Producing paper creates pollution. There is no externality in the consumption of paper. The efficient quantity of paper is when the
A) marginal social benefit of paper is equal to zero.
B) marginal social cost of the pollution from making paper is equal to zero.
C) marginal social benefit of paper is equal to the marginal social cost of paper.
D) marginal private cost of the pollution from making paper is equal to zero.
C
You might also like to view...
The value of currently produced final goods and services measured in constant prices is called:
A) real GDP. B) nominal GDP. C) imputed values. D) inflation.
Irene is a vegetarian, so she does not eat pork. That is, pork provides no additional utility to Irene. She loves broccoli, however. If we illustrate Irene's indifference curves by drawing broccoli on the horizontal axis and pork on the vertical axis, her indifference curves will
a. slope downward. b. be vertical straight lines. c. slope upward. d. be horizontal straight lines.