Which of the following statements is true about the optimal quantity of pollution?

Question

Quizplus · Accepted Answer

The optimal quantity of pollution does not equal zero as some pollution may be necessary for economic activity. Marginal cost should equal marginal benefit when determining the optimal level of pollution. However, there are often trade-offs between producing a cleaner environment and producing other goods and services. This means that complete pollution abatement may not be feasible or desirable. Firms should be incentivized to take into account these trade-offs when choosing the profit-maximizing amount of pollution abatement.

Which of the Following Statements Is True About the Optimal