Figure: Efficiency and Pollution (Figure: Efficiency and Pollution)

question 102

Multiple Choice

Figure: Efficiency and Pollution (Figure: Efficiency and Pollution) Look at the figure Efficiency and Pollution.If the government imposed an environmental standard that did not allow the quantity of pollution to exceed 40 tons, there would be:

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