In perfect competition, environmental externalities need not distort t – McqOptions

MCQOPTIONS

1.	In perfect competition, environmental externalities need not distort the allocation ofresources providing
A.	transactions costs are zero.
B.	average costs are constant for all output levels.
C.	firms install pollution control equipment.
D.	the government sets realistic pollution standards.
Answer» B. average costs are constant for all output levels.

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