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-(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. If 5 tons of pollution is produced:
A) too much pollution is produced.
B) the efficient amount of pollution is produced.
C) not enough pollution is produced.
D) the socially optimum amount of pollution is produced.

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. If 5 tons of pollution is produced:
A) too much pollution is produced. 
B) the efficient amount of pollution is produced. 
C) not enough pollution is produced. 
D) the socially optimum amount of pollution is produced.

Quizplus · Accepted Answer

At 5 tons of pollution, the marginal social cost likely exceeds the marginal social benefit, indicating that too much pollution is being produced compared to the socially optimal level.

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