At what point does the optimal level of pollution abatement in the steel industry occur?
A) where the total cost of abatement is equal to the total benefit from abatement
B) where the marginal social cost of producing steel is equal to the demand for steel
C) where the marginal social cost of abatement is equal to the marginal social benefit from abatement
D) where the marginal private cost of abatement is equal to the marginal social benefit from abatement

Question

Quizplus · Accepted Answer

The optimal level of pollution abatement occurs where the marginal social cost of abatement is equal to the marginal social benefit from abatement. This means that society is benefiting the most from the resources used in pollution abatement at this point, as the cost of achieving each additional unit of pollution reduction is equal to the benefit gained from that reduction. Therefore, C is the correct answer.

At What Point Does the Optimal Level of Pollution Abatement