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Figure: Pollution and Efficiency
-(Figure: Pollution and Efficiency) Look at the figure Pollution and Efficiency. If this market, whose sulfur emission is a result of production, produced _____ units of emissions, then _____.
A) 30; it would be efficient
B) 30; MSB MSC
C) 45; total cost would equal total benefits
D) 45; MSC = 0

Question

Use the following to answer questions:
Figure: Pollution and Efficiency 
-(Figure: Pollution and Efficiency) Look at the figure Pollution and Efficiency. If this market, whose sulfur emission is a result of production, produced _____ units of emissions, then _____.
A) 30; it would be efficient 
B) 30; MSB > MSC 
C) 45; total cost would equal total benefits 
D) 45; MSC = 0

Quizplus · Accepted Answer

At 30 units of emissions, the market is efficient because the marginal social benefit (MSB) equals the marginal social cost (MSC), indicating an optimal level of pollution where the benefits of production are balanced by the costs of pollution.

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