If,at the current amount of pollution,its marginal social benefit is greater than its marginal social cost:
A)there is too little pollution.
B)there is too much pollution.
C)society is achieving the optimal amount of pollution.
D)the externality is minimized.

Question

Quizplus · Accepted Answer

When the marginal social benefit of pollution exceeds its marginal social cost, it means that pollution is producing more benefits than costs. This indicates that pollution levels are not sufficient and society is not fully utilizing the benefits associated with pollution. Therefore, there is too little pollution.

If,at the Current Amount of Pollution,its Marginal Social Benefit Is