Use the following statements to answer this question: I. The efficient amount of recycling of scrap materials is the amount that equates the marginal social cost of scrap disposal to the marginal cost of recycling.
II) The efficient amount of recycling of scrap materials occurs when society recycles all recyclable wastes.
A) Both I and II are true.
B) I is true, and II is false.
C) I is false, and II is true.
D) Both I and II are false.

Question

Quizplus · Accepted Answer

Statement I is true as efficient recycling would occur when the marginal social cost of scrap disposal is equal to the marginal cost of recycling. However, statement II is false as it implies that all recyclable wastes must be recycled, which is not always efficient or feasible.

Use the Following Statements to Answer This Question: I