The allocatively efficient amount of pollution prevention would occur when

Question

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Allocative efficiency occurs when the marginal social benefits of an activity equal the marginal social costs. Therefore, the allocatively efficient amount of pollution prevention would occur when the marginal social benefits of pollution prevention equal the marginal social costs of pollution prevention. Choice A is incorrect because it refers to total social benefits and costs rather than marginal. Choice B is incorrect because it only focuses on minimizing costs, not considering benefits. Choice D is incorrect because C is a correct answer.

The Allocatively Efficient Amount of Pollution Prevention Would Occur When