
-In the above figure, if a firm is cleaning up
units of pollution, it is an
A) efficient solution, because marginal social benefits are greater than marginal social costs.
B) efficient solution, because marginal social benefits are equal to marginal social costs.
C) inefficient solution, because marginal social benefits are greater than marginal social costs.
D) inefficient solution, because marginal social costs are greater than marginal social benefits.
Correct Answer:
Verified
Q162: Q165: Suppose people value clean air more as Q177: In economic analysis, the optimal level of Q179: Q184: Pollution Q187: The level of pollution at which the Q189: The marginal cost of pollution abatement is Q191: Explain how the optimal quantity of air Q195: "The optimal level of pollution is zero." Q198: Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents![]()
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A) creates a negative externality.
B) is increased![]()