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

Question

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

Quizplus · Accepted Answer

The optimal level of pollution is achieved when the marginal social benefit from decreased pollution is equal to the marginal social cost of reducing pollution, meaning that the costs of further abatement would outweigh the benefits. This is also known as the "efficient" or "economically optimal" level of pollution. The other choices are not optimal as zero pollution or excessive abatement may not be feasible or cost-effective.

The Optimal Level of Pollution Is Achieved When