Figure 5-7
-Refer to Figure 5-7.Which of the following statements is true?

Question

Figure 5-7 
-Refer to Figure 5-7.Which of the following statements is true?

Quizplus · Accepted Answer

At the point Q_B, the marginal cost of pollution reduction is lower than the marginal benefit of pollution reduction. Therefore, society is currently under allocating resources to pollution reduction. This point represents the optimal quantity of pollution reduction. Option A and D are incorrect because the marginal cost of pollution reduction is higher than the marginal benefit of pollution reduction at those points.

Figure 5-7 -Refer to Figure 5-7.Which of the Following Statements Is True