If the marginal benefit of reducing water pollution is constant at $10 per ton, then it is efficient to reduce water pollution
A)to zero.
B)until marginal cost of reducing water pollution equals $10 per ton.
C)as long as the marginal cost of reducing water pollution is greater than $10 per ton.
D)to whatever level the market determines.

Question

Quizplus · Accepted Answer

It is efficient to reduce water pollution until the marginal cost equals the marginal benefit, which is $10 per ton in this case.

If the Marginal Benefit of Reducing Water Pollution Is Constant