Use the Following to Answer Question

question 47

Multiple Choice

Use the following to answer question:
Figure: The Socially Optimal Quantity of Pollution
-(Figure: The Socially Optimal Quantity of Pollution) Use Figure: The Socially Optimal Quantity of Pollution.In the figure,firms are the only beneficiaries of pollution,and costs are borne solely by others in the society.The optimal level of pollution is:

• A)zero since no pollution is best for society.
• B)where the marginal social benefit curve intersects the quantity axis.
• C)where the marginal social cost curve intersects the quantity axis.
• D)where the marginal social benefit curve intersects the marginal social cost curve.

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Definitions:

Comparative Advantage

The ability of a country or firm to produce a particular good or service at a lower opportunity cost than its competitors, underpinning the rationale for international trade.

Job Losses

The act of becoming unemployed due to factors like economic downturns, restructuring, or automation.

Job Gains

Increases in the number of jobs available in an economy, indicating employment growth and potentially a strengthening economic condition.

Consumer Surplus

The disparity between the total price consumers are ready and able to pay for a service or product and what they end up paying.