The dry-cleaning industry generates pollution. Assume that there are no regulations on pollution and the dry-cleaning industry and the dry-cleaning industry is perfectly competitive.
1.What is true about the equilibrium quantity of dry-cleaning services? (1 point)
a.The equilibrium quantity of dry-cleaning services is less than the socially optimal quantity of dry-cleaning services.
b.The equilibrium quantity of dry-cleaning services is equal to the socially optimal quantity of dry-cleaning services.
c.The equilibrium quantity of dry-cleaning services is more than the socially optimal quantity of dry-cleaning services.
2.What is true about the equilibrium price of dry-cleaning services? (1 point)
a.The equilibrium price of dry-cleaning services is less than the marginal social cost of providing dry-cleaning services.
b.The equilibrium price of dry-cleaning services is equal to the marginal social cost of providing dry-cleaning services.
c.The equilibrium price of dry-cleaning services is more than the marginal social cost of providing dry-cleaning services.