If the marginal social benefit received from pollution is greater than its marginal social cost in a market:

Question

Quizplus · Accepted Answer

If the marginal social benefit received from pollution is greater than its marginal social cost in a market, it means that society is getting more benefits than the costs associated with pollution. Therefore, increasing the quantity of pollution will lead to even more benefits for society. However, it is important to note that this assumes that the negative externalities of pollution are not being fully internalized and that there are no viable alternatives to the polluting activity. In an ideal situation, the external costs associated with pollution should be taken into account and the market should be regulated to ensure that the socially optimal level of pollution is achieved.

If the Marginal Social Benefit Received from Pollution Is Greater