Assuming that pollution cannot be removed from the environment at zero cost, the optimal level of pollution

Question

Quizplus · Accepted Answer

Since pollution cannot be removed at zero cost, it is not economically feasible to completely eliminate pollution. Therefore, the optimal level of pollution would be a positive level that balances the benefits of the activity causing pollution with the costs of reducing pollution. Alternative negative solutions, such as paying people to pollute less than a certain amount, are not practical or economically feasible, and a zero pollution solution would likely lead to negative economic outcomes. Therefore, C is the best choice.

Assuming That Pollution Cannot Be Removed from the Environment at Zero