Reducing Automobile Pollution Beyond a Certain Point Is Not Efficient

Multiple Choice

Reducing automobile pollution beyond a certain point is not efficient when:

A) the marginal benefit from reduced pollution is less than the marginal cost of reducing the pollution.
B) the marginal cost of reducing pollution is less than the marginal benefit from reduced pollution.
C) the marginal private cost of producing automobiles is less than the marginal social cost.
D) the marginal external cost of pollution is zero.