The society is best served whenever the outlays for maintaining clean air are such that the marginal social benefit is just equal to the marginal social cost for the last unit of clean air obtained.

Question

Quizplus · Accepted Answer

This statement is true. The optimal level of pollution control occurs when the cost of reducing pollution is equal to the benefits gained from pollution reduction. This level is achieved when marginal social cost equals marginal social benefit, and is referred to as the socially optimal level of pollution.

The Society Is Best Served Whenever the Outlays for Maintaining