When Good A is produced,pollution is also produced.When the marginal social cost of production of Good A equals marginal social benefit from Good A,then I.there is no pollution.
II.resources are used efficiently.
A)I only
B)II only
C)neither I nor II
D)both I and II
E)sometimes I and sometimes II,but never both simultaneously

Question

Quizplus · Accepted Answer

When the marginal social cost equals the marginal social benefit, resources are used efficiently, but it does not imply that there is no pollution.

When Good a Is Produced,pollution Is Also Produced