In a free market in which there is pollution,the optimal amount of pollution reduction occurs when:

Question

Quizplus · Accepted Answer

The optimal amount of pollution reduction occurs when social marginal benefits of reduction equal its social marginal costs. At this point, any further reduction in pollution would result in a higher cost than benefit. Therefore, the socially optimal level of pollution reduces the negative effects of pollution to the point where the benefits of further reduction no longer outweigh the costs.

In a Free Market in Which There Is Pollution,the Optimal