Use the following to answer question:
Figure: Pollution and Efficiency
-(Figure: Pollution and Efficiency)Use Figure: Pollution and Efficiency.In this market,in which sulfur emissions are a result of production,if _____ units of emissions are produced,then _____.
A)40;MSB = MSC
B)30;MSB

Question

Use the following to answer question:
Figure: Pollution and Efficiency 
-(Figure: Pollution and Efficiency)Use Figure: Pollution and Efficiency.In this market,in which sulfur emissions are a result of production,if _____ units of emissions are produced,then _____.
A)40;MSB = MSC 
B)30;MSB < MSC 
C)40;MSB < MSC 
D)30;MSC < MSB

Quizplus · Accepted Answer

At 40 units of emissions, the Marginal Social Cost (MSC) of pollution is greater than the Marginal Social Benefit (MSB), indicating that the social costs of pollution exceed the benefits at this level of emissions.

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