In order to minimize the net cost of pollution reduction, the level of pollution reduction (the amount of a pollutant not released into the environment) should be the level at which

Question

Quizplus · Accepted Answer

In order to minimize the net cost of pollution reduction, the level of pollution reduction should be such that the marginal benefit of reducing pollution equals the marginal cost of reducing pollution. At this level of pollution reduction, the additional benefit of reducing pollution is equal to the additional cost incurred in reducing pollution, and there is no further reduction that can be made without incurring higher costs than the benefits received. This is the most efficient point of pollution reduction, where the maximum net gain can be achieved.

In Order to Minimize the Net Cost of Pollution Reduction