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Figure: Pollution and Efficiency
-(Figure: Pollution and Efficiency)Use Figure: Pollution and Efficiency.In this market,whose sulfur emissions are a result of production,an efficient solution takes place at a price of _____ and a quantity of _____.
A)$5;40
B)$15;30
C)$25;30
D)$15;15

Question

Use the following to answer question:
Figure: Pollution and Efficiency 
-(Figure: Pollution and Efficiency)Use Figure: Pollution and Efficiency.In this market,whose sulfur emissions are a result of production,an efficient solution takes place at a price of _____ and a quantity of _____.
A)$5;40 
B)$15;30 
C)$25;30 
D)$15;15

Quizplus · Accepted Answer

An efficient solution occurs where the marginal social cost (MSC) equals the marginal social benefit (MSB), which is at a price of $15 and a quantity of 30 units. At this point, the total pollution levels are minimized while still providing the optimal quantity of the product to society.

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