Use the Following to Answer Question

question 158

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.If the government imposed an environmental standard that did not allow the quantity of pollution to exceed 20 tons,there would be:

• A)a socially optimal quantity of pollution.
• B)too little pollution because its marginal social benefit would exceed its marginal social cost.
• C)too much pollution because its marginal social cost would exceed its marginal social benefit.
• D)too much pollution because any pollution is too much from an economist's perspective.

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Definitions:

Receivable

An amount of money owed to a company by its customers or clients for goods or services provided on credit.

Installation

The process of setting up software or hardware to make it ready for use, or the setting up of machinery or equipment for operational purposes.

Unsatisfactory Performance

The failure to meet established performance standards or expectations in a job or task.