Asked by
Chassidy Cress
on Oct 26, 2024Verified
If the marginal social benefit received from pollution is less than its marginal social cost:
A) society's well-being can be improved if the quantity of pollution increases.
B) society's well-being can be improved if the quantity of pollution decreases.
C) society has achieved its socially optimal level of pollution.
D) the market is producing too little pollution.
Marginal Social Benefit
The additional benefit to society from one more unit of a good or service being produced and consumed.
Marginal Social Cost
The additional cost incurred by society as a whole from producing one more unit of a good or service, including both private costs and any externalities.
Pollution
The introduction of harmful substances or products into the environment, causing adverse effects.
- Determine the peak pollution level that supports the common good.
- Examine the economic implications of pollution through a cost-benefit analysis.
Verified Answer
DB
Learning Objectives
- Determine the peak pollution level that supports the common good.
- Examine the economic implications of pollution through a cost-benefit analysis.