(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 cost of pollution is:
A)$800.
B)$400.
C)$200.
D)$0.

Question

Quizplus · Accepted Answer

The marginal social cost of pollution is the cost to society of the additional pollution. At the market-determined quantity of pollution, the marginal social cost of pollution is equal to the marginal social benefit of pollution. The marginal social benefit of pollution is the benefit to society of the additional pollution. In this case, the marginal social benefit of pollution is $400. Therefore, the marginal social cost of pollution is also $400.

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