The intersection of the demand curve for pollution emissions and the marginal cost curve for pollution is:
A) the efficient level of pollution emissions.
B) greater than the efficient level of pollution emissions.
C) less than the efficient level of pollution emissions.
D) could be greater or less than the efficient level of pollution emissions.

Question

Quizplus · Accepted Answer

The intersection of the demand curve for pollution emissions and the marginal cost curve for pollution represents the point where the marginal cost of reducing pollution is equal to the marginal benefit of reducing pollution. This is also known as the efficient level of pollution emissions, where the costs of reducing pollution are equal to the benefits of reducing pollution. Therefore, the correct answer is A.

The Intersection of the Demand Curve for Pollution Emissions and the Marginal