The optimal level of pollution is achieved when the
A) marginal social benefits from decreased pollution are equal to its marginal social costs of reducing pollution.
B) level of pollution is zero.
C) pollution abatement exceeds the pollution level.
D) benefits from further pollution abatement are zero.

Question

Quizplus · Accepted Answer

The optimal level of pollution occurs where the marginal social benefits from reducing pollution are equal to the marginal social cost of reducing pollution. This is because any reduction in pollution beyond this point would cost more than the benefits it provides, while any less reduction in pollution would result in a net loss of benefits. Choices B and C are not feasible or desirable, as a zero pollution level is not practical, and excessive pollution abatement can be costly and inefficient. Choice D does not reflect the optimal level of pollution, as there may still be some benefits from further pollution abatement, even if they are smaller than the costs involved.

The Optimal Level of Pollution Is Achieved When the