Damage to the environment occurs because:

A) no one involved in markets cares about the environment.
B) a nonzero amount of pollution is never socially optimal.
C) pollution results from production of goods and services.
D) pollution reduces the social cost of production.

Social Cost

The total cost to society, including both private costs borne by individuals and external costs borne by others not involved in a transaction.

Environment

The surroundings or conditions in which a person, animal, or plant lives or operates, including natural, built, and social components.

Pollution

The contamination of the natural environment with harmful substances, resulting in adverse effects on ecosystems and human health.