The optimal level of pollution is where
A)total profit is maximized for the producer.
B)marginal profit is maximized for the producer.
C)marginal benefits of control of the pollution equals marginal costs.
D)the marginal benefits of production equals the marginal social costs of production.

Question

Quizplus · Accepted Answer

The optimal level of pollution is where the marginal benefits of control of the pollution equal marginal costs. This means that society is no longer willing to pay for additional pollution control measures because the cost of those measures is equal to the benefits they would bring. This ensures a balance between environmental protection and economic growth. Choices A and B focus only on producer profit, while choice D only addresses production costs without considering the impact on the environment.

The Optimal Level of Pollution Is Where