The optimal amount of air pollution is
A) found by equating the marginal benefits from reducing pollution by one more unit with the marginal costs of reducing pollution by an additional unit.
B) found by equating the total benefits from reducing pollution by one more unit with the total costs of reducing pollution by an additional unit.
C) found by setting the marginal benefits from reducing pollution by one more unit equal to zero.
D) a meaningless concept since we cannot monetize the environment.
A
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Suppose a profit-maximizing monopolist faces a constant marginal cost of $10, produces an output level of 100 units, and charges a price of $50 . The socially efficient level of output is 200 units. Assume that the demand curve and marginal revenue curve are the typical downward-sloping straight lines. The monopoly deadweight loss equals $2,000
a. True b. False Indicate whether the statement is true or false
In a self-regulating economy, a recessionary gap will be eliminated by falling wages which will shift the SRAS curve to the right
Indicate whether the statement is true or false