Which of the following statements about the economically efficient level of air pollution is correct?
A)The economically efficient level of pollution is zero.
B)The economically efficient level of pollution occurs where all social costs equal all social benefits.
C)The economically efficient level of pollution occurs where the marginal cost of pollution reduction equals the marginal social benefit of reduction.
D)The economically efficient level of pollution occurs where total benefits of pollution reduction are maximized.

Question

Quizplus · Accepted Answer

The economically efficient level of pollution occurs where the marginal cost of pollution reduction equals the marginal social benefit of reduction. This means that the cost of reducing pollution is equal to the benefit society gains from the reduction. It is not realistic to aim for zero pollution, as some level of pollution is unavoidable and may have certain benefits, such as industrial production, transportation, and so on. In addition, total benefits maximization may not be the best approach, as it ignores the costs of pollution reduction. Therefore, the answer is C.

Which of the Following Statements About the Economically Efficient Level