If the marginal benefit received from pollution is equal to its marginal cost, then:
A) society's well-being can be improved if the quantity of pollution increases.
B) society's well-being can be improved if the quantity of pollution decreases.
C) society's well-being cannot be improved by changing the quantity of pollution.
D) the market is producing too much pollution.

Question

Quizplus · Accepted Answer

If the marginal benefit received from pollution is equal to its marginal cost, it means that society is indifferent to the level of pollution. In this case, changing the quantity of pollution will not improve or decrease society's well-being. Therefore, the best choice is C.

If the Marginal Benefit Received from Pollution Is Equal to Its