Use the following to answer question:
-(Table: Coal Mine Pollution)Use Table: Coal Mine Pollution.The table shows the marginal social benefit and cost of various amounts of pollution from a coal mine.Suppose that the marginal cost from the production process itself (to the producer)is 0.At the market-determined quantity of pollution,the marginal social benefit of pollution is:
A)$800.
B)$400.
C)$200.
D)$0.

Question

Use the following to answer question: 
-(Table: Coal Mine Pollution)Use Table: Coal Mine Pollution.The table shows the marginal social benefit and cost of various amounts of pollution from a coal mine.Suppose that the marginal cost from the production process itself (to the producer)is 0.At the market-determined quantity of pollution,the marginal social benefit of pollution is:
A)$800. 
B)$400. 
C)$200. 
D)$0.

Quizplus · Accepted Answer

At the market-determined quantity of pollution, the marginal social benefit (MSB) is the benefit to society from one additional unit of pollution. Since the question states that the marginal cost from the production process itself to the producer is $0, and pollution typically has a negative impact on society rather than a benefit, the MSB at the market-determined quantity would be $0, indicating no additional benefit from extra pollution.

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