In the paper-water economy, which of the following is not a condition for Pareto optimality?
A) the MRTS of the paper mill must be greater than the MRTS of the water treatment plant
B) the MRS of paper for water must be the same for each agent in the society
C) the MRS of water and paper must equal the MRTS of water for paper
Correct Answer:
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Q2: Because of externalities, the competitive market determines
Q3: Private marginal cost is cost excluding externalities.
Q4: Externalities consist of
A) both costs and benefits
B)
Q5: In the presence of externalities, the private
Q6: The only way for a society to
Q7: Because the cost of the paper mill
Q8: Marketable permits comprise a system for a
Q9: In markets with externalities, if property rights
Q10: By reducing the costs imposed on the
Q11: If a market has two polluting firms
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