Use the Following to Answer Question

question 1

Multiple Choice

Use the following to answer question:
Figure: Efficiency and Pollution
-(Figure: Efficiency and Pollution) Use Figure: Efficiency and Pollution.Assume that firms are the only beneficiaries of pollution and that costs are borne solely by others in the society.A Pigouvian tax of $10 per acre of pollution will result in a quantity of pollution for which the:

• A)marginal social benefit is less than the marginal social cost.
• B)marginal social benefit exceeds the marginal social cost.
• C)marginal social benefit equals the marginal social cost.
• D)resources are allocated efficiently.

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Definitions:

Emotional Reaction

The immediate response of a person's feelings towards an event, situation, or experience.

Anger

An intense emotional response usually triggered by perceived wrongs or frustration, potentially influencing behavior and decision-making.

Anxiety

A mental health condition marked by feelings of worry, nervousness, or fear that are strong enough to interfere with one's daily activities.

Frustration

The emotion of irritation or dissatisfaction stemming from the inability to alter or accomplish something.