The optimal level of water and air quality
A)is zero, which is a pollution-free environment
B)occurs when the marginal private cost of air quality equals its marginal social cost
C)is greater if the marginal social cost curve of air quality shifts downward
D)occurs when all negative externalities are eliminated
E)eliminates the common pool problem

Question

Quizplus · Accepted Answer

The optimal level of water and air quality is greater if the marginal social cost curve shifts downward, as it implies that the cost of achieving higher quality is lower, allowing for a higher optimal level.

The Optimal Level of Water and Air Quality