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Figure: Efficiency and Pollution
-(Figure: Efficiency and Pollution) Use Figure: Efficiency and Pollution.Assume that firms are the only beneficiaries of pollution and that costs are borne solely by others in the society.A Pigouvian tax of $10 per hectare of pollution will result in a quantity of pollution for which the:
A) marginal social benefit is less than the marginal social cost.
B) marginal social benefit exceeds the marginal social cost.
C) marginal social benefit equals the marginal social cost.
D) resources are allocated efficiently.
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Figure: MSB
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Figure: Model
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Figure: MSB
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Figure: Model
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Figure: Efficiency
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