-Refer to the diagram above.The socially optimal reduction in air pollution due to automobiles is
A) 0%.
B) 45%.
C) 50%.
D) 70%.
E) 100%.

Question

-Refer to the diagram above.The socially optimal reduction in air pollution due to automobiles is
A) 0%. 
B) 45%. 
C) 50%. 
D) 70%. 
E) 100%.

Quizplus · Accepted Answer

The socially optimal reduction in air pollution is where the marginal cost of pollution reduction equals the marginal benefit. This is typically represented at a point where the cost of reducing pollution further outweighs the benefits, often around 50% in theoretical models.

-Refer to the Diagram Above