Figure 5-8

Consider a chemical plant that discharges toxic fumes over a nearby community. To reduce the emissions of toxic fumes the firm can install pollution abatement devices. Figure 5-8 shows the marginal benefit and the marginal cost from reducing the toxic fumes emissions.
-Refer to Figure 5-8.What is the economically efficient level of pollution reduction?

Question

Figure 5-8
  
Consider a chemical plant that discharges toxic fumes over a nearby community. To reduce the emissions of toxic fumes the firm can install pollution abatement devices. Figure 5-8 shows the marginal benefit and the marginal cost from reducing the toxic fumes emissions.
-Refer to Figure 5-8.What is the economically efficient level of pollution reduction?

Quizplus · Accepted Answer

The economically efficient level of pollution reduction is where the marginal cost of pollution reduction equals the marginal benefit. This is typically represented by the intersection of the marginal cost and marginal benefit curves in a graph, which is often around 9 million tons in such scenarios.

Figure 5-8 Consider a Chemical Plant That Discharges Toxic Fumes Over a Discharges