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Question 142

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Use the following to answer question:
Figure: MSB and MSC of Pollution Use the following to answer question: Figure: MSB and MSC of Pollution -(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.If the current level of pollution is at Q<sub>1</sub>,_____ pollution is being emitted because _____. A) not enough;MSB > MSC B) not enough;MSB < MSC C) too much;MSB > MSC D) the socially optimal amount of;MSB = MSC
-(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.If the current level of pollution is at Q1,_____ pollution is being emitted because _____.


A) not enough;MSB > MSC
B) not enough;MSB < MSC
C) too much;MSB > MSC
D) the socially optimal amount of;MSB = MSC

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