Why is it not efficient to eliminate all pollution?
What will be an ideal response?
Eliminating pollution is a task that uses resources, so there is an opportunity cost. If the marginal social cost of eliminating another unit of pollution is greater than the marginal social benefit, it would not be an efficient use of resources to eliminate the pollution because there are other activities with a higher value to society. In other words, pollution elimination is similar to any other good: pollution should be eliminated until the marginal social benefit of pollution reduction equals the marginal social cost of pollution reduction.
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Graphing the data in the above table with the number of workers on the horizontal axis and the average cost on the vertical axis, the graph would show
A) first a negative and then a positive relationship. B) a horizontal line. C) no relationship. D) a linear relationship.
Explain the income and substitution effects of an increase in the price of one good on an individual's consumption choice
What will be an ideal response?