Suppose That the Costs and Benefits of Achieving Water Quality

Multiple Choice

Suppose that the costs and benefits of achieving water quality in New York are modeled as shown below. Use these relationships for any or all of questions .
MSB = 80 - 2A MSC = 20 + 2A
TSB = 80A - A² TSC = 20A + A²,
where A is the abatement level for conventional pollutants.
-Compared to the efficient level of abatement, the benefit-based abatement standard

A) is twice as large in this case
B) uses fewer resources
C) is associated with higher water quality
D) is more cost-effective