(Figure: MSB and MSC of Pollution) Use Figure: MSB and MSC of Pollution.Assume that firms are the only beneficiaries of pollution and that costs are borne solely by others in the society.Suppose pollution is unregulated.What level of emissions tax would move the level of pollution to the socially optimal level?

A) $100 per ton
B) $800 per ton
C) $500 per ton
D) $300 per ton

MSB

Marginal Social Benefit, referring to the additional benefit to society as a whole from consuming one more unit of a good.

MSC

MSC, or Marginal Social Cost, is the total cost to society of producing one additional unit of a good or service, including both private costs and externalities.

Pollution

The introduction of harmful substances or products into the environment, leading to adverse effects on living organisms and ecosystems.