The average total cost curves for plants A, B, C, and D are shown in the above figure. It is possible that the long-run average cost curve runs through points

For a natural monopoly, if price is set equal to marginal cost then the firm incurs an economic loss

Indicate whether the statement is true or false

At the efficient level of pollution, the:

a. total social costs and total social benefits of reduction are equal. b. marginal social costs and marginal social benefits are equal. c. marginal private costs and marginal private benefits are equal. d. total private costs and total private benefits are equal.