Figure: The Quantity of Pollution (Figure: The Quantity of Pollution) Look at the table The Quantity of Pollution.If the amount of pollution emitted is 150, then:
A)this economy needs to increase production of this good.
B)the marginal social benefit is greater than the marginal social cost of pollution.
C)the production of pollution is not socially optimal.
D)this economy is producing at the socially optimal level of pollution.

Question

Figure: The Quantity of Pollution   (Figure: The Quantity of Pollution) Look at the table The Quantity of Pollution.If the amount of pollution emitted is 150, then:
A)this economy needs to increase production of this good. 
B)the marginal social benefit is greater than the marginal social cost of pollution. 
C)the production of pollution is not socially optimal. 
D)this economy is producing at the socially optimal level of pollution.

Quizplus · Accepted Answer

According to the table, at a pollution level of 150, the marginal social cost is greater than the marginal social benefit. This suggests that the production of pollution is not socially optimal, as the negative externalities of pollution are causing a net loss to society. Therefore, the correct choice is C.

Figure: the Quantity of Pollution (Figure: the Quantity