Figure 15.8 Consider a chemical plant that discharges toxic waste into a nearby waterway.To reduce the emissions of toxic waste, the firm can install pollution abatement devices.Figure 15.8 shows the marginal benefit and the marginal cost from reduction the toxic waste emissions.
-Refer to Figure 15.8.What is the economically efficient level of pollution reduction?

Question

Figure 15.8  Consider a chemical plant that discharges toxic waste into a nearby waterway.To reduce the emissions of toxic waste, the firm can install pollution abatement devices.Figure 15.8 shows the marginal benefit and the marginal cost from reduction the toxic waste emissions.
-Refer to Figure 15.8.What is the economically efficient level of pollution reduction?

Quizplus · Accepted Answer

The economically efficient level of pollution reduction is where the marginal cost of pollution reduction equals the marginal benefit. This is typically shown in a graph where the two curves intersect, which in this case is at 9 million tons.

Figure 158 Consider a Chemical Plant That Discharges Toxic Waste