(Figure: Pollution and Efficiency) Use Figure: Pollution and Efficiency.In this market,whose sulfur emissions are a result of production,an efficient solution is one in which:

A) MSB < MSC.
B) MSC < MSB.
C) total cost = total benefit.
D) MSC = MSB.

Question

Sherbie Strawder · Accepted Answer

Final Answer : D, Explanation :  An efficient solution is one where the marginal social cost (MSC) is equal to the marginal social benefit (MSB), which is shown in the figure where the two curves intersect. This means that the pollution is being reduced to the optimal level while still allowing for production and consumption to occur. Therefore, the best choice is D.

(Figure: Pollution and Efficiency) Use Figure: Pollution and Efficiency.In this market,whose sulfur emissions are a result of production,an efficient solution is one in which:

A) MSB < MSC.
B) MSC < MSB.
C) total cost = total benefit.
D) MSC = MSB.

Definitions

Learning Objectives

Learning Objectives

Related questions

(Figure: Pollution and Efficiency) Use Figure: Pollution and Efficiency.In this market,whose sulfur emissions are a result of production,an efficient solution is one in which:A) MSB < MSC.B) MSC < MSB.C) total cost = total benefit.D) MSC = MSB.

Definitions

Learning Objectives

Learning Objectives

Related questions

(Figure: Pollution and Efficiency) Use Figure: Pollution and Efficiency.In this market,whose sulfur emissions are a result of production,an efficient solution is one in which:

A) MSB < MSC.
B) MSC < MSB.
C) total cost = total benefit.
D) MSC = MSB.