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The graph shows the marginal social benefit curve (MSB) and marginal social cost curve (MSC) of pollution emissions. A graph with marginal social benefit /
The graph shows the marginal social benefit curve (MSB) and marginal social cost curve (MSC) of pollution emissions. A graph with marginal social benefit / marginal social cost on the vertical axis and quantity of pollution emissions on the horizontal axis. The graph contains two lines. Marginal social cost abbreviated as MSC and marginal social benefit abbreviated as MSB MSC is downward sloping and runs through the points (23, $62), (45, $35), (61, $19), and (87, $0). MSB is upward sloping and runs through the points (0, $0), (23, $15), (45, $35), and (61, $54). For the 87th unit of pollution emissions, the MSB is the MSC. Determine the socially optimal quantity of pollution emissions. pollution emissions: tons Will a market economy, without any government intervention, produce the socially optimal quantity of pollution emissions? No, it will produce less. Yes, it will. No, it will produce more
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