Use the following to answer questions : $\begin{array}{l}\text { Table: Coal Mine Pollution }\\\begin{array} { c c c } \hline \begin{array} { l } \text { Quantity of } \\\text { Pollution } \\\text { (tons) }\end{array} & \begin{array} { c } \text { Marginal } \\\text { Social } \\\text { Benefit }\end{array} & \begin{array} { c } \text { Marginal } \\\text { Social } \\\text { Cost }\end{array} \\\hline 0 & \$ 800 & \$ 0 \\1 & 700 & 100 \\2 & 600 & 200 \\3 & 500 & 300 \\4 & 400 & 400 \\5 & 300 & 500 \\6 & 200 & 600 \\7 & 100 & 700 \\8 & 0 & 800 \\\hline\end{array}\end{array}$
-(Table: Coal Mine Pollution) Use Table: Coal Mine Pollution.The table shows the marginal social benefit and cost of various amounts of pollution from a coal mine.If 5 tonnes of pollution is produced,the outcome is _____ because _____.

Question

Use the following to answer questions : $$\begin{array}{l}
\text { Table: Coal Mine Pollution }\
\begin{array} { c c c } 
\hline \begin{array} { l } 
\text { Quantity of } \
\text { Pollution } \
\text { (tons) }
\end{array} & \begin{array} { c } 
\text { Marginal } \
\text { Social } \
\text { Benefit }
\end{array} & \begin{array} { c } 
\text { Marginal } \
\text { Social } \
\text { Cost }
\end{array} \
\hline 0 & \$ 800 & \$ 0 \
1 & 700 & 100 \
2 & 600 & 200 \
3 & 500 & 300 \
4 & 400 & 400 \
5 & 300 & 500 \
6 & 200 & 600 \
7 & 100 & 700 \
8 & 0 & 800 \
\hline
\end{array}
\end{array}$$
-(Table: Coal Mine Pollution)Use Table: Coal Mine Pollution.The table shows the marginal social benefit and cost of various amounts of pollution from a coal mine.If 5 tonnes 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 tonnes of pollution, the marginal social benefit (MSB) is $300, and the marginal social cost (MSC) is $500. Since MSB < MSC, the outcome is inefficient.

Use the Following to Answer Questions -(Table: Coal Mine Pollution)Use Table: Coal Mine Pollution