(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.If 5 tons of pollution is produced, the outcome is ________ because _. A)efficient; MSB = MSC B)efficient; MSB MSC C)inefficient; MSB MSC D)inefficient; MSB

Question

(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.If 5 tons of pollution is produced, the outcome is ________ because _.
A)efficient; MSB = MSC
B)efficient; MSB > MSC
C)inefficient; MSB > MSC
D)inefficient; MSB < MSC

Quizplus · Accepted Answer

At 5 tons of pollution, the MSB is greater than the MSC. Therefore, producing 5 tons of pollution is not efficient. The best choice would be to produce less than 5 tons of pollution in order for the MSB to equal the MSC and achieve efficiency.

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