Abatement level would generate marginal social benefit

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Suppose that a proposal is under review to strengthen the NPDWS for benzene, and the associated abatement level would generate a marginal social benefit (MSB) that is greater than the marginal social cost (MSC) by $125,000.

A. On efficiency grounds, should the proposed standard be more stringent or more lenient, and why?

B. Specifically, what does the $125,000 represent?

Reference no: EM13862729

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