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 decreases.
B) the market is producing too much pollution.
C) the market is producing too little pollution.
D) the market is producing an efficient quantity of pollution.

Question

Quizplus · Accepted Answer

When the marginal benefit of pollution is equal to its marginal cost, the market is producing an efficient quantity of pollution. This means that reducing or increasing the level of pollution would result in a loss of overall benefits for society. Therefore, the efficient level of pollution is reached when the marginal benefit is equal to the marginal cost.

If the Marginal Benefit Received from Pollution Is Equal to Its