The marginal social cost of pollution is the additional cost of damage to the environment resulting from the production of a good or service.
<h3>Example of Marginal Social Cost of Pollution</h3>
For example, if it costs Resla Motors $100 to produce an additional item of micro-batteries and the pollution generated as a result of that production process causes $43 damage to a nearby farm, the marginal social cost of pollution to Resla Motors is the sum of the cost of production - $100 and the external cost of $43 which is $143.
<h3>What is Marginal Social Benefit of Pollution</h3>
This is defined as the additional gain from an additional unit of pollution to the entire society. If all the costs and or benefits resulting from pollution were fully enumerated, the benefit opted for is the Marginal Social Benefit of Pollution.
<h3>When pollution can provide benefits to a firm</h3>
This scenario is called private benefits. It can be enjoyed by the producer and the consumer of a particular good or service. It is derived from the total marginal utility. The marginal social benefit is given as the addition of :
- Marginal Private Benefit plus
- External Benefits.
Let's assume that Resla Inc. also produces mobile phones. The consumer who purchases the phone pays for the mobile phone and not the pollution caused by the production of the phone.
<h3>What is Socially Optimal Level of Pollution?</h3>
This refers to the economic position when the marginal benefit of the last unit of pollution is equal to the marginal cost of pollution. Under this scenario, the resulting level of pollution will be optimal if all the externalities of pollution are accounted for.
Learn more about Socially Optimal Levels of Pollution in the link below:
brainly.com/question/5345918
