Assuming that pollution cannot be removed from the environment at zero cost, the optimal level of pollution
A) will be zero.
B) will be negative.
C) will be greater than zero.
D) cannot be determined.

Question

Quizplus · Accepted Answer

The optimal level of pollution cannot be zero as it would be too costly to eliminate all pollution. A negative level of pollution is not possible as pollution is a by-product of human activity. The optimal level is therefore greater than zero, which means that pollution is minimized to a level where the cost of reducing pollution is equal to the cost of the damage caused by pollution.

Assuming That Pollution Cannot Be Removed from the Environment at Zero