The optimal level of pollution abatement is where
A) the marginal benefit of abatement is greater than its marginal cost.
B) the marginal benefit of abatement is less than its marginal cost.
C) the marginal benefit of abatement is equal to its marginal cost.
D) none of the above

Question

Quizplus · Accepted Answer

The optimal level of pollution abatement is where the marginal benefit of abatement is equal to its marginal cost. This means that any further abatement would cost more than the benefit derived from it, and any less abatement would result in benefits that outweigh the costs. Therefore, the efficient level is where marginal benefit equals marginal cost.

The Optimal Level of Pollution Abatement Is Where