Asked by LaRissa Porterie on Jul 04, 2024
Verified
(Figure: Pollution and Efficiency) Use Figure: Pollution and Efficiency.In this market,whose sulfur emissions are a result of production,an efficient solution is one in which:
A) MSB < MSC.
B) MSC < MSB.
C) total cost = total benefit.
D) MSC = MSB.
MSB
Stands for Marginal Social Benefit, representing the additional benefit to society from consuming one more unit of a good or service.
MSC
Marginal Social Cost, which refers to the total cost to society of producing an additional unit of a good or service.
- Perceive the association between marginal social benefit, marginal social cost, and the ideal quantity of pollution or externalities.
Verified Answer
SS
Sherbie StrawderJul 08, 2024
Final Answer :
D
Explanation :
An efficient solution is one where the marginal social cost (MSC) is equal to the marginal social benefit (MSB), which is shown in the figure where the two curves intersect. This means that the pollution is being reduced to the optimal level while still allowing for production and consumption to occur. Therefore, the best choice is D.
Learning Objectives
- Perceive the association between marginal social benefit, marginal social cost, and the ideal quantity of pollution or externalities.
Related questions
(Figure: Pollution and Efficiency)Use Figure: Pollution and Efficiency ...
(Table: Coal Mine Pollution)Use Table: Coal Mine Pollution ...
As Pollution Emission Levels Increase, the Marginal Social Cost of ...
As Pollution Emission Levels Increase, the Marginal Social Benefit of ...
There Are Benefits Resulting Indirectly from Pollution Because ...