The marginal social benefit received from pollution is equal to its marginal social cost in the market for highly polished glass.In this situation:
A)society's well-being can be improved if the quantity of pollution decreases.
B)firms in the market produce too much pollution.
C)firms in the market produce too little pollution.
D)firms in the market produce the socially optimal level of pollution.

Question

Quizplus · Accepted Answer

If the marginal social benefit received from pollution is equal to its marginal social cost, then the market is producing the socially optimal level of pollution. This means that any increase or decrease in the quantity of pollution would lead to a decrease in society's overall well-being. Therefore, firms in the market are producing the optimal level of pollution.

The Marginal Social Benefit Received from Pollution Is Equal to Its