(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 market-determined quantity of pollution, the marginal social benefit of pollution is:
A)$800.
B)$400.
C)$200.
D)$0.

Question

Quizplus · Accepted Answer

The market-determined quantity of pollution is where the marginal social benefit equals the marginal social cost, which in this case is 600 units of pollution. At this level of pollution, the marginal social benefit is zero, so it is not beneficial to produce any more pollution beyond this level. Therefore, the best choice is to reduce pollution to 600 units.

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