Use the following to answer questions:
Figure: MSB and MSC of Pollution 
-(Figure: MSB and MSC of Pollution) Look at the figure MSB and MSC of Pollution. What level of pollution represents the socially optimal level?
Definitions:
Market Wage
The prevailing rate of pay for workers in a particular labor market, job, or industry.
Perfect Competitor
A theoretical market situation in which no individual buyer or seller has the power to influence market prices.
Demand Curve
An illustrated chart that depicts how the demand for a product varies with changes in its price.
Marginal Product
The addition to total output due to the use of one more unit of a variable input, keeping all other inputs constant.
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