Use the Following to Answer Question

question 142

Multiple Choice

Use the following to answer question:
Figure: MSB and MSC of Pollution
-(Figure: MSB and MSC of Pollution) Use Figure: MSB and MSC of Pollution.Assume that firms are the only beneficiaries of pollution and that costs are borne solely by others in the society.If the current level of pollution is at Q₁,_____ pollution is being emitted because _____.

• A)not enough;MSB > MSC
• B)not enough;MSB < MSC
• C)too much;MSB > MSC
• D)the socially optimal amount of;MSB = MSC

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Definitions:

HIV

Human Immunodeficiency Virus, a virus that attacks the immune system, leading to AIDS if not treated.

Monophyletic

Referring to a group of organisms that consists of all the descendants of a common ancestor.

Descendants

Offspring or future generations derived from a common ancestor.

Ancestor

A person, plant, animal, or object from whom one is descended, typically one more remote than a grandparent, such as a great-grandparent or beyond.