A large government faces a production possibilities frontier much like a business firm does

In Figure 34.5, the effect of a well-enforced anti-scalping law is to Figure 34.5 

A. increase the welfare of consumers and decrease the welfare of scalpers. B. reduce the welfare of consumers and scalpers by GFB. C. increase the welfare of consumers by ABC. D. decrease the welfare of scalpers by AFGC.

The optimal quantity of pollution in the above figure

A. is the level of pollution at which the marginal benefit equals the marginal cost. B. is defined as the level where the marginal benefit is at a maximum. C. is where the optimal degree of air cleanliness is 100 percent. D. cannot be determined.