In order to minimize the net cost of pollution reduction,the level of pollution reduction (the amount of a pollutant not released into the environment)should be the level at which
A)the marginal benefit of reducing pollution exceeds the marginal cost of reducing pollution by the greatest possible amount.
B)the total benefit of reducing pollution equals the total cost of reducing pollution.
C)the marginal benefit of reducing pollution equals the marginal cost of reducing pollution.
D)the total cost of reducing pollution is minimized and the total benefits of reducing pollution are maximized.

Question

Quizplus · Accepted Answer

At the level where the marginal benefit of reducing pollution equals the marginal cost of reducing pollution, the cost of reducing pollution is justified by the benefit gained from it. This ensures that the reduction in pollution is done efficiently, i.e. at a cost that does not outweigh the benefits. Therefore, the best choice is C.

In Order to Minimize the Net Cost of Pollution Reduction,the