Multiple Choice
(Figure: Cost of Pollution) Which of the following statements is TRUE?
A) The efficient quantity of pollution occurs below 6,000 units.
B) At 2,000 units of pollution, the marginal benefit is less than the marginal cost, so there should be less pollution.
C) At 2,000 units of pollution, the marginal benefit exceeds the marginal cost, so there should be more pollution.
D) At 2,000 units of pollution, the marginal benefit exceeds the marginal cost, so there should be less pollution.
Correct Answer:

Verified
Correct Answer:
Verified
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