(Table: Coal Mine Pollution) The table Coal Mine Pollution shows the marginal social benefit and the marginal social cost of various amounts of pollution from a coal mine.At the efficient quantity of pollution:
A)the marginal social cost of pollution is greater than the marginal social benefit of pollution.
B)the marginal social cost of pollution is equal to the marginal social benefit of pollution.
C)the marginal social cost of pollution is less than the marginal social benefit of pollution.
D)the marginal social cost of pollution and the marginal social benefit of pollution are unrelated.

Question

Quizplus · Accepted Answer

At the efficient quantity of pollution, the marginal social cost of pollution is equal to the marginal social benefit of pollution. This is the point where the total net benefit (benefits minus costs) is maximized, and any deviation from this quantity would result in a decrease in overall welfare.

(Table: Coal Mine Pollution) the Table Coal Mine Pollution Shows