If the marginal benefit received from pollution is greater than its marginal cost in a market, then:
A)society's well-being can be improved if the quantity of pollution decreases.
B)firms in the market produce the socially optimal level of pollution.
C)firms in the market produce too much pollution.
D)firms in the market produce too little pollution.

Question

Quizplus · Accepted Answer

If the marginal benefit of pollution is greater than its marginal cost, it indicates that the current level of pollution is less than the socially optimal level, meaning firms produce too little pollution.

If the Marginal Benefit Received from Pollution Is Greater Than