The efficient level of pollution occurs where the marginal benefit of pollution equals the marginal cost of pollution.

Question

Quizplus · Accepted Answer

The efficient level of pollution occurs where the marginal benefit of pollution equals the marginal cost of pollution. At this point, the marginal benefit of reducing pollution by one unit is less than the marginal cost of reducing pollution by one unit. Any level of pollution above this efficient level results in a net welfare loss for society.

The Efficient Level of Pollution Occurs Where the Marginal Benefit