-The figure above provides information for a factory that produces chemicals that pollute a waterway. The waterway is used by water skiers. The efficient quantity of chemicals to produce is ________ tons of chemicals a week.
A) 1 ton
B) as many tons as possible
C) 3 tons
D) 5 tons

Question

-The figure above provides information for a factory that produces chemicals that pollute a waterway. The waterway is used by water skiers. The efficient quantity of chemicals to produce is ________ tons of chemicals a week.
A) 1 ton 
B) as many tons as possible 
C) 3 tons 
D) 5 tons

Quizplus · Accepted Answer

The efficient quantity of chemicals is where the marginal social cost equals the marginal social benefit, which is typically less than the maximum production capacity due to externalities like pollution.

-The Figure Above Provides Information for a Factory That Produces