An efficient policy to reduce pollution would reduce pollution to the point where:
A) the marginal costs of reducing pollution equal the marginal benefits of reducing pollution.
B) it is eliminated.
C) the marginal costs of reducing pollution are greater than the marginal benefits of reducing pollution.
D) the marginal costs of reducing pollution are less than the marginal benefits of reducing pollution.

Question

Quizplus · Accepted Answer

An efficient policy balances costs and benefits, so pollution should be reduced until the marginal cost of reduction equals the marginal benefit.

An Efficient Policy to Reduce Pollution Would Reduce Pollution to the Point