If the Marginal Benefit Received from Pollution Is Greater Than

question 36

Multiple Choice

If the marginal benefit received from pollution is greater than its marginal cost, then:

• A) society's well-being can be improved if the quantity of pollution decreases.
• B) society's well-being cannot be improved by changing the quantity of pollution.
• C) the market is producing too much pollution.
• D) the market is producing too little pollution.

---

Definitions:

Depreciation

The process of allocating the cost of a tangible or physical asset over its useful life, reflecting the decrease in value over time.

Economic Profit

Economic profit is the surplus that remains when total revenue exceeds the total costs, including both explicit and implicit costs.

Explicit Costs

Direct payments made to others in the course of running a business, such as wages, rent, and materials.

Total Revenues

The overall amount of money generated by a business from its sales or services before any costs or expenses are deducted.