1. If antibiotic users get all the benefits of antibiotics but do not bear all of the costs, the social marginal cost of antibiotic use at the market equilibrium will be: A) higher than the marginal cost to antibiotic sellers. B) less than the marginal cost to antibiotic sellers. C) higher than the marginal benefit to the antibiotic buyers. D) less than the marginal benefit to the antibiotic buyers. Use the following to answer question 2: Exhibit: EPA Regulations There are two firms: Company A and Company B. The EPA enforces regulations saying that neither firm can release more than 10 units of pollutants. Company A currently releases 10 units and Company B releases 11 units. The EPA requires B to reduce its pollution by I unit-the company can do this, but at a cost of $1,000. Company A, however, can reduce pollution by 1 unit for a cost of $400. Company B wants to save money by trading allowances with Company A. After negotiations, Company A agrees to sell one unit of pollutant to Company B for $650. 2. (Exhibit: EPA Regulations) Refer to the exhibit. How do both firms profit from trading allowances? A) A gains $650, and B saves $550. B) A gains $250, and B saves $350. C) A gains $650, and B saves $1, 100. D) A gains $1,050, and B saves $550. 3. Antibiotic use carries an external of building bacterial resistance against drugs. A) benefit B) cost C) price D) revenue