Figure: MSB and MSC of Pollution (Figure: MSB and MSC of Pollution) The figure MSB and MSC of Pollution shows the marginal social cost and marginal social benefit of pollution.If the current level of pollution is at Q₁: A)not enough pollution is being emitted, as the MSB MSC. B)not enough pollution is being emitted, as the MSB MSC. D)the socially optimal amount of pollution is being emitted, as the MSB = MSC.

Question

Figure: MSB and MSC of Pollution  (Figure: MSB and MSC of Pollution) The figure MSB and MSC of Pollution shows the marginal social cost and marginal social benefit of pollution.If the current level of pollution is at Q₁:
A)not enough pollution is being emitted, as the MSB > MSC. 
B)not enough pollution is being emitted, as the MSB < MSC. 
C)too much pollution is being emitted, as the MSB > MSC. 
D)the socially optimal amount of pollution is being emitted, as the MSB = MSC.

Quizplus · Accepted Answer

The Answer of Figure: MSB and MSC of Pollution  (Figure: MSB and MSC of Pollution) The figure MSB and MSC of Pollution shows the marginal social cost and marginal social benefit of pollution.If the current level of pollution is at Q₁:
A)not enough pollution is being emitted, as the MSB > MSC. 
B)not enough pollution is being emitted, as the MSB < MSC. 
C)too much pollution is being emitted, as the MSB > MSC. 
D)the socially optimal amount of pollution is being emitted, as the MSB = MSC.