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Topic: Book Reports
Number of pages / Number of words: 3 / 628
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In the long run, profit maximizing firms are then able to spread these fixed costs into variable costs over a large production run.

e) “Cleaning up air pollution will be costly but we cannot weigh money against clean air.”

This is not an example of an economically sound statement. Firstly, it is very much a normative statement, where the speaker provides a very subjective view which implies that the air should be cleaned no matter what the cost is...


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Firstly, it is very much a normative statement, where the speaker provides a very subjective view which implies that the air should be cleaned no matter what the cost is. Had the speaker said that “Cleaning up the air is good for the environment, and will cost $X” with relevant evidence, it would be a positive statement and hence economically sound...


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