If Production Is Characterized by Variable Technology and Generates Pollution,the

Multiple Choice

If production is characterized by variable technology and generates pollution,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) the average private cost equals the average social cost.