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 2 tons of pollution is produced, the marginal social benefit is _____, and the marginal social cost is _____.
A) $600; $200
B) $500; $300
C) $400; $400
D) $800; $0

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 2 tons of pollution is produced, the marginal social benefit is _____, and the marginal social cost is _____.
A) $600; $200 
B) $500; $300 
C) $400; $400 
D) $800; $0

Quizplus · Accepted Answer

The marginal social benefit of 2 tons of pollution is $600, and the marginal social cost is $200. This is because the marginal social benefit is the additional benefit that society receives from producing one more unit of pollution, and the marginal social cost is the additional cost that society incurs from producing one more unit of pollution. In this case, the marginal social benefit of 2 tons of pollution is $600, because society receives $600 in additional benefits from producing one more ton of pollution. The marginal social cost of 2 tons of pollution is $200, because society incurs $200 in additional costs from producing one more ton of pollution.

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