The optimal level of pollution is:

Question

Quizplus · Accepted Answer

The optimal level of pollution is the one at which the marginal social cost of air quality equals the marginal social benefit. This means that any further reduction in pollution would lead to a greater cost to society than the additional benefit it would provide, and any increase in pollution would lead to a lower benefit than the additional cost it imposes on society. Therefore, option A is the correct choice. Option B is incorrect because it focuses on the average social cost and benefit, which does not capture the trade-offs at the margin. Option C is incorrect because it looks at the total cost and benefit, which is not as useful for determining the optimal level of pollution as the marginal analysis. Option D is incorrect because zero pollution is not always feasible or desirable, especially if the benefits of some pollution (e.g., from industrial production or transportation) outweigh its costs.

The Optimal Level of Pollution Is