Use the following to answer question(s): Efficiency and Pollution

-(Exhibit: Efficiency and Pollution) An efficient solution is where:
A) MB

Name: Use the following to answer question(s): Efficiency and Pollution -(Exhibit: Efficiency and Pollution) An efficient solution is where: A) MB < MC. B) MC < MB. C) total cost = total benefit. D) MC = MB.
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Question

Use the following to answer question(s): Efficiency and Pollution
 
-(Exhibit: Efficiency and Pollution) An efficient solution is where:
A) MB < MC. 
B) MC < MB. 
C) total cost = total benefit. 
D) MC = MB.

Quizplus · Accepted Answer

An efficient solution is where the marginal cost (MC) equals the marginal benefit (MB). This occurs at the point where the two curves intersect.

Use the Following to Answer Question(s): Efficiency and Pollution