FIGURE 12-2

-Refer to Figure 12-2, which represents the costs and benefits of pollution control. What is the optimal amount of pollution control?

Question

FIGURE 12-2
 
-Refer to Figure 12-2, which represents the costs and benefits of pollution control. What is the optimal amount of pollution control?

Quizplus · Accepted Answer

The optimal amount of pollution control is where the marginal benefit equals the marginal cost, which is at point Q2 in the graph. At this point, the net benefit is maximized. Any further increase in pollution control beyond Q2 would result in a decrease in net benefit. Therefore, Q2 is the best choice for pollution control.

FIGURE 12-2 -Refer to Figure 12-2, Which Represents the Costs and Benefits