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An Environmental Activist Describes an Environment Canada Requirement for a $700

Question 40

Multiple Choice

An environmental activist describes an Environment Canada requirement for a $700 air pollution control device for all cars as a policy that leads to the socially optimal reduction in pollution.In terms of the diagram above,for this to be true,it must be the case that the


A) marginal cost is lower than MC.
B) marginal benefit is lower than MB.
C) true marginal cost is greater than MC.
D) true marginal benefit is greater than MB.
E) marginal benefit is the only issue to consider.

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