1.According to the Law of Supply,

A.price and quantity supplied are positively related, c.p.

B.firms produce less output as the price of the product rises, ceteris paribus

C.marginal cost rises as the firm contracts production

D.there is an inverse relationship between output and price, holding all else constant

2.According to the criteria of cost-effectiveness, an abatement standard is set optimally if

A.that standard is benefit-based

B.it is set where the MSB of abatement is equal to (MAC_mkt + MCE).

C.the standard is reached at minimum cost

D.it is set at the point where MSB of abatement equals zero

E.it is set at the point where MSC of abatement equals zero