An outward shift of the production possibilities curve demonstrates

Refer to Figure 5-7. What is the incremental benefit of increasing the quantity of pollution reduction from QB to QE units?

A) the value of the area BEF B) PE × QE C) the value of the area QBBFQE D) PE

Private costs are

A) external costs borne by private firms. B) explicit costs rather than implicit costs. C) costs borne by private members of society rather than governmental bodies. D) costs borne solely by the individuals who incur them.