Use the following to answer questions:
-(Table: Coal Mine Pollution) The table Coal Mine Pollution shows the marginal social benefit and cost of various amounts of pollution from a coal mine. The market-determined quantity of pollution is _____ tons.
A) 0
B) 2
C) 4
D) 8

Question

Use the following to answer questions: 
-(Table: Coal Mine Pollution) The table Coal Mine Pollution shows the marginal social benefit and cost of various amounts of pollution from a coal mine. The market-determined quantity of pollution is _____ tons.
A) 0 
B) 2 
C) 4 
D) 8

Quizplus · Accepted Answer

The market-determined quantity of pollution occurs where the marginal social benefit equals the marginal social cost. Without the table, we assume the highest quantity listed, which is often the market outcome.

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