(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.The socially optimal quantity of pollution is _____ tons.

A) 0
B) 20
C) 30
D) 45

Question

Kayla Hickman · Accepted Answer

Final Answer : C, Explanation :  The socially optimal quantity of pollution occurs where the marginal social cost equals the marginal social benefit. In this scenario, firms benefit from pollution, but society bears the cost. The optimal point balances these factors, which is typically not zero unless pollution has no benefit.

(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.The socially optimal quantity of pollution is _____ tons.

A) 0
B) 20
C) 30
D) 45

Definitions

Learning Objectives

Learning Objectives

Related questions

(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.The socially optimal quantity of pollution is _____ tons.A) 0B) 20C) 30D) 45

Definitions

Learning Objectives

Learning Objectives

Related questions

(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.The socially optimal quantity of pollution is _____ tons.

A) 0
B) 20
C) 30
D) 45