(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 the marginal social cost of pollution is:
A)$0.
B)$100.
C)$200.
D)$400.

Question

Quizplus · Accepted Answer

The efficient quantity of pollution is where the marginal social benefit (MSB) equals the marginal social cost (MSC). At a pollution level of 3, the MSB is $600 and the MSC is $400, which is the efficient level of pollution. Therefore, the marginal social cost of pollution at the efficient quantity is $400.

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