Asked by Amber Glenn on May 28, 2024
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(Figure: The Socially Optimal Quantity of Pollution) Use Figure: The Socially Optimal Quantity of Pollution.In the figure,firms are the only beneficiaries of pollution,and costs are borne solely by others in the society.The optimal level of pollution is:
A) zero since no pollution is best for society.
B) where the marginal social benefit curve intersects the quantity axis.
C) where the marginal social cost curve intersects the quantity axis.
D) where the marginal social benefit curve intersects the marginal social cost curve.
Marginal Social Benefit
An additional gain to society derived from consuming or producing another unit of a good or service.
Marginal Social Cost
An increased charge to the general public for the creation of one more unit of a product or service.
Pollution
The presence in or introduction into the environment of a substance or thing that has harmful or poisonous effects.
- Examine situations to identify the socially optimal quantities of public goods and externalities.
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Learning Objectives
- Examine situations to identify the socially optimal quantities of public goods and externalities.
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