If the Marginal Benefit Received from Pollution Is Equal to Its

question 47

Multiple Choice

If the marginal benefit received from pollution is equal to its marginal cost, then:

• A) society's well-being can be improved if the quantity of pollution decreases.
• B) the market is producing too much pollution.
• C) the market is producing too little pollution.
• D) the market is producing an efficient quantity of pollution.

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Definitions:

Selling Price

Selling price is the amount of money that a seller is willing to accept in exchange for a good or service it provides to buyers.

Marginal Cost

The extra expense resulting from the manufacture of an additional unit of a product or service.

Social Cost

The cost to society as a whole due to an activity, including both direct costs incurred and indirect effects (such as environmental damage or health impacts).

Marginal Cost

Marginal Cost is the additional cost incurred from producing one more unit of a good or service, an important concept in economics for decision-making regarding production levels.