Asked by Heather Smith on Jun 03, 2024

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(Table: Coal Mine Pollution) Use Table: Coal Mine Pollution.The table shows the marginal social benefit and cost of various amounts of pollution from a coal mine.Suppose that the marginal cost from the production process itself (to the producer) is 0.At the market-determined quantity of pollution,the marginal social benefit of pollution is:

A) $800.
B) $400.
C) $200.
D) $0.

Marginal Social Benefit

The extra benefit that society receives from consuming an additional unit of a good or service.

Production Process

The sequence of operations or steps taken to produce a good or deliver a service.

Market-Determined Quantity

Refers to the quantity of a good or service that is established through the interaction of supply and demand within a market.

  • Examine how the market dictates the amount of pollution and assess its effects on the well-being of society.
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ZK
Zybrea KnightJun 06, 2024
Final Answer :
D
Explanation :
At the market-determined quantity of pollution, the marginal social benefit (MSB) is the benefit to society from one additional unit of pollution. Since the question states that the marginal cost from the production process itself to the producer is $0, and pollution typically has a negative impact on society rather than a benefit, the MSB at the market-determined quantity would be $0, indicating no additional benefit from extra pollution.