The marginal benefit received from pollution is equal to its marginal cost in the market for highly polished glass.In this situation:
A)society's well-being can be improved if the quantity of pollution decreases.
B)firms in the market produce too much pollution.
C)firms in the market produce too little pollution.
D)firms in the market produce the socially optimal level of pollution.

Question

Quizplus · Accepted Answer

If the marginal benefit received from pollution is equal to its marginal cost, then firms are producing the optimal level of pollution for society. Any decrease in pollution would result in a reduction in marginal benefit, while any increase in pollution would result in an increase in marginal cost. Therefore, the socially optimal level of pollution is being produced.

The Marginal Benefit Received from Pollution Is Equal to Its