For a good whose production creates a pollution, when marginal social cost equals marginal social benefit, then I there is no pollution.
II resources are utilized efficiently.
A) I only
B) II only
C) neither I nor II
D) both I and II

Question

Quizplus · Accepted Answer

When marginal social cost equals marginal social benefit, resources are utilized efficiently, but it does not imply that there is no pollution.

For a Good Whose Production Creates a Pollution, When Marginal