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Figure: MSB and MSC of Pollution
-(Figure: MSB and MSC of Pollution) Look at the figure MSB and MSC of Pollution. What level of pollution represents the socially optimal level?

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Figure: MSB and MSC of Pollution

-(Figure: MSB and MSC of Pollution) Look at the figure MSB and MSC of Pollution. What level of pollution represents the socially optimal level?

Quizplus · Accepted Answer

The socially optimal level of pollution occurs where the marginal social benefit (MSB) equals the marginal social cost (MSC), which is typically represented by Q₂ in such diagrams.

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