The socially optimal amount of pollution moderation occurs where society's marginal:
A)benefit of moderation exceeds its marginal cost of moderation by the greatest amount.
B)benefit of moderation equals its marginal cost of moderation.
C)benefit of moderation is zero.
D)cost of moderation is at its maximum.

Question

Quizplus · Accepted Answer

The socially optimal amount of pollution moderation occurs where society's marginal benefit of moderation equals its marginal cost of moderation. This means that further moderation would result in more costs than benefits, while less moderation would result in more benefits than costs. Therefore, the optimal point is where the two are equal.

The Socially Optimal Amount of Pollution Moderation Occurs Where Society's