Explain why the optimal amount of pollution is often not zero
What will be an ideal response?
The optimal amount of pollution occurs when the production decision includes the cost of pollution. Some pollution may exist with the optimal level of production because although pollution is harmful, production of goods is beneficial. A trade-off between the harm of pollution and the benefits of production leads to some pollution.
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The fact that since 1990 the number of movie screens in the United States has grown faster than the number of theaters illustrates the benefits of
a. economies of scale b. constant long-run average cost c. diseconomies of scale d. increasing long-run average cost e. a U-shaped marginal cost curve
What is marginal utility and what is the law of diminishing marginal utility?
What will be an ideal response?