Figure 11.10 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 11.10 shows the marginal benefit and the marginal cost from reduction the toxic waste emissions.
-Refer to Figure 11.10.What is the economically efficient level of pollution reduction?

Question

Figure 11.10  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 11.10 shows the marginal benefit and the marginal cost from reduction the toxic waste emissions.
-Refer to Figure 11.10.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 represented in a graph where the two curves intersect, which in this case is at 9 million tons.

Figure 1110 Consider a Chemical Plant That Discharges Toxic Waste