If pollution coming from factories is bad, then why would the socially optimal level of pollution not be zero?
A) because there are signiﬁcant social costs of achieving zero pollution
B) because there are signiﬁcant social beneﬁts from attaining zero pollution
C) because the factories are privately owned in a market system
D) because there are zero beneﬁts from zero pollution

Question

Quizplus · Accepted Answer

While zero pollution may seem ideal, there are practical limitations to achieving it without significant social costs. These costs could include excessive regulations or taxes that hinder economic growth and job creation. Therefore, the socially optimal level of pollution would be the point at which the benefits from reducing pollution further are outweighed by the costs of doing so. This level is typically determined through cost-benefit analysis and may vary depending on the specific circumstances.

If Pollution Coming from Factories Is Bad, Then Why Would