As a result of the fact that the benefit to the community to clean the polluted lake is $100, 000 but the cost is $120, 000, we can expect that The lake is not cleaned since the cost exceeds the benefit.
When the cost of doing something exceeds the benefit of doing it, then the thing will most likely not be done. This is because human beings are rationally minded and so usually try to do things that would give them a net marginal benefit. They can only get a net marginal benefit if the benefits of doing something is more than the cost of doing that thing.
In this scenario, the cost of cleaning up the polluted lake is $120, 000 while the benefit of cleaning up the lake is $100, 000. The benefit is therefore less than the cost to clean so we can expect that the community would not clean up the lake.
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