Figure 5-4 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 5-4 shows the marginal benefit and the marginal cost from reducing the toxic fumes emissions.
-Refer to Figure 5-4.What is the economically efficient level of pollution reduction?

Question

Figure 5-4  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 5-4 shows the marginal benefit and the marginal cost from reducing the toxic fumes emissions.
-Refer to Figure 5-4.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 in a graph where the two curves intersect, which is at 9 million tons in this scenario.

Figure 5-4 Consider a Chemical Plant That Discharges Toxic