At the efficient level of pollution, the:

Question

Quizplus · Accepted Answer

The efficient level of pollution occurs when the marginal social cost (MSC) of reducing pollution is equal to the marginal social benefit (MSB) of reducing pollution. This ensures that society is allocating resources efficiently by reducing pollution until the cost of reducing it is equal to the benefit generated from that reduction. Therefore, at the efficient level of pollution, the marginal social costs and marginal social benefits are equal (choice B). The other options are incorrect because they do not take into account the full social costs and benefits associated with pollution reduction.

At the Efficient Level of Pollution, The