The efficient rate of emissions occurs where:

Question

Quizplus · Accepted Answer

The efficient rate of emissions occurs where the change in benefits is equal to the change in costs due to an additional unit of emissions. This is known as the "marginal benefit equals marginal cost" principle, where there is an optimal amount of pollution that balances the benefits it provides (such as economic growth or affordable energy) with the costs it imposes (such as health risks or environmental degradation). Option A is not practical as all human activities have some impact on the environment, even if it is minor. Option B is not feasible as it would entail high opportunity costs and market distortions. Option C is incorrect as the efficient level of pollution occurs where the marginal cost equals the marginal benefit, not the other way around.

The Efficient Rate of Emissions Occurs Where