Figure: the Socially Optimal Quantity of Pollution (Figure: the Socially

question 184

Multiple Choice

Figure: The Socially Optimal Quantity of Pollution (Figure: The Socially Optimal Quantity of Pollution) In the figure The Socially Optimal Quantity of Pollution, without government intervention:

• A)firms will continue to pollute until the marginal social benefit is zero.
• B)firms will continue to pollute until the marginal social benefit is $200.
• C)the optimal quantity of pollution will occur.
• D)The outcome cannot be determined without more information.

---

Definitions:

IPO

An Initial Public Offering (IPO) is the process through which a private company becomes publicly traded by offering its shares for sale to the public for the first time.

Prospectus

An official document that companies must publish when offering securities for sale to the public, detailing financial and other significant information.

IPO Pop

The increase in a stock's price on the first day of trading following its initial public offering (IPO), often reflecting high investor demand.

Stock Price

The current market price at which a share of stock can be bought or sold.