The optimal level of air quality
A)is always zero
B)occurs when the marginal social cost of air quality exceeds the marginal social benefit
C)is greater if the marginal social benefit curve of air quality shifts rightward
D)occurs when positive externalities are eliminated
E)eliminates the common pool problem

Question

Quizplus · Accepted Answer

The optimal level of air quality is greater if the marginal social benefit curve shifts rightward, indicating increased benefits from improved air quality.

The Optimal Level of Air Quality