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Figure: Efficiency and Pollution
-(Figure: Efficiency and Pollution) Look at the figure Efficiency and Pollution. The socially optimal quantity of pollution is _____ tons.
A) 0
B) 20
C) 30
D) 45

Question

Use the following to answer questions:
Figure: Efficiency and Pollution 
-(Figure: Efficiency and Pollution) Look at the figure Efficiency and Pollution. The socially optimal quantity of pollution is _____ tons.
A) 0 
B) 20 
C) 30 
D) 45

Quizplus · Accepted Answer

The socially optimal quantity of pollution is where the marginal social cost equals the marginal social benefit, which is typically not zero but at a point where the benefits of pollution reduction equal the costs.

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