Asked by Meliza Acosta on Jul 25, 2024
Verified
At the optimum, the marginal social benefit from pollution emissions
A) is zero.
B) will be greater than the marginal social cost of pollution emitted.
C) will equal the marginal social cost of pollution emitted.
D) will be less than the marginal social cost of pollution emitted.
Marginal Social Benefit
The additional benefit gained by society from the production or consumption of one more unit of a good or service.
Marginal Social Cost
The cost society bears for production of an additional unit of a good or service, including both private costs and any externalities.
- Identify the equilibrium condition where marginal social benefit equals marginal social cost.
Verified Answer
SK
Segana KinyeJul 31, 2024
Final Answer :
C
Explanation :
At the optimum, the marginal social benefit from pollution emissions will equal the marginal social cost of pollution emitted. This balance ensures that the level of pollution is socially efficient, meaning that the cost of reducing pollution further would outweigh the benefits.
Learning Objectives
- Identify the equilibrium condition where marginal social benefit equals marginal social cost.
Related questions
(Figure: MSB and MSC of Pollution)Use Figure: MSB and MSC ...
(Figure: an Individual's Marginal Benefit from a Public Good)Use Figure ...
Given That What Can Be Inferred About the Total ...
The Market for Paper in a Particular Region Has the ...
Constructing Plastic Containers Produces Air Pollutants ...