Economics 9708 · AS & A Level · 7.4

7.4 — practice question

An economist carries out a cost-benefit analysis of the pollution produced by a manufacturing process. Which judgement is most likely to inform any recommendation about the best level of manufacturing output?

  • Athat the marginal social cost of manufacturing equals the marginal social benefit
  • Bthat the marginal cost of pollution is zero
  • Cthat the total revenue of manufacturing equals the total cost
  • Dthat the total benefit of pollution is maximised

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