Reference no: EM133714347

Question: Review the marginal benefit (MB) and marginal cost (MC) curves of environmental protection on the chart below, and determine what condition is indicated by the intersection of the MB and MC curves (for a level of environmental protection equal to B)? Two curves and three lines on a coordinate plane. A coordinate plane has a horizontal axis labeled Environmental Protection with 3 tick marks labeled from left to right as A, B, and C and a vertical axis labeled Price. Vertical dashed lines cross the horizontal axis at A, B, and C. From left to right, a curve labeled M B falls at a decreasing rate. From left to right, another curve labeled M C rises at an increasing rate intersecting M B on the line at B. Select the correct answer below: At this point, the marginal costs are less than the marginal benefits, which means society is allocating too few resources to reduce pollution. At this point there are usually numerous relatively cheap and easy ways to reduce pollution, and the marginal benefits of doing so are quite high. Therefore, it makes sense to allocate more resources to fight pollution. At this point society is investing an optimal