If Production Is Characterized by Variable Technology, the Optimal Level

Multiple Choice

If production is characterized by variable technology, the optimal level of air quality occurs where

A) the marginal private cost of air quality equals the marginal social benefit
B) the marginal social cost of air quality equals the marginal social benefit
C) the marginal social cost of air quality equals the marginal private cost of air quality
D) government regulators set it
E) all costs are absorbed by the polluter