The socially optimal quantity of pollution emissions occurs where:

Question

Quizplus · Accepted Answer

The socially optimal quantity of pollution emissions occurs where the marginal social benefit of pollution is equal to the marginal social cost of pollution. This means that the benefits of the pollution (such as increased production or economic activity) are exactly offset by the costs (such as damage to the environment or negative health effects). This is the point at which the overall societal welfare is maximized. Choices A and B are not necessarily the best options as they may not achieve the socially optimal outcome. Corrective taxes can be a more efficient and cost-effective way of reducing pollution than a zero-tolerance policy. Choice C is incorrect because it suggests that the benefits of pollution outweigh the costs, which is not optimal for society as a whole.

The Socially Optimal Quantity of Pollution Emissions Occurs Where