Exhibit 17-3 In Exhibit 17-3, the optimal air quality level is where the MSB=MSC.

Name: Exhibit 17-3 In Exhibit 17-3, the optimal air quality level is where the MSB=MSC.
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Question

Exhibit 17-3  In Exhibit 17-3, the optimal air quality level is where the MSB=MSC.

Quizplus · Accepted Answer

This statement is correct. The optimal air quality level is where the marginal social benefit (MSB) of reducing pollution is equal to the marginal social cost (MSC) of pollution control. This equilibrium point maximizes social welfare.

Exhibit 17-3 in Exhibit 17-3, the Optimal Air Quality