Asked by SeLva MaLaR Prakash on Jun 22, 2024

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The marginal social benefit received from pollution is less than its marginal social cost in the market for highly polished glass.In this situation:

A) firms in the market produce the socially optimal level of pollution.
B) society's well-being cannot be improved by changing the quantity of pollution.
C) firms in the market produce too much pollution.
D) firms in the market produce too little pollution.

Marginal Social Benefit

The additional benefit to society as a whole from the consumption of one more unit of a good or service.

Marginal Social Cost

The additional cost incurred by society as a whole due to producing one more unit of a good or service.

Pollution

The contamination of the natural environment, leading to adverse effects on ecosystems and human health.

  • Forecast the impact of external costs on the efficiency of markets.
  • Ascertain the socially ideal level of pollution by evaluating marginal social advantages and expenses.
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SU
Shafira UlinnuhaJun 23, 2024
Final Answer :
C
Explanation :
When the marginal social benefit received from pollution is less than its marginal social cost, it means that the negative externalities of pollution are not being taken into account in the market. Therefore, firms in the market are not paying for the full cost of their pollution, leading them to produce more pollution than is socially optimal. This results in choice C, where firms in the market produce too much pollution.