If an abatement standard is set to achieve allocative efficiency at the national level, then
a. that standard necessarily achieves allocative efficiency in all regions
b. the standard cannot be optimal at the regional level unless the MSB and MSC for all regions are identical to one another
c. all regions will abate below the optimal level
d. at that abatement standard, all regions will face MSC higher than MSB
b. the standard cannot be optimal at the regional level unless the MSB and MSC for all regions are identical to one another
You might also like to view...
A person will choose to buy a good as long as
A) marginal benefit is at least as great as price. B) consumer surplus is positive. C) marginal benefit is positive. D) consumer surplus is at least as great as price.
The value of marginal product of labor
A) is the change in total product that results from selling one more unit of a good. B) is equal to the price of the good produced multiplied by the marginal product of labor. C) is equal to marginal revenue multiplied by the quantity. D) increases as the amount of labor employed increases.