The optimal quantity of pollution is:
A)zero.
B)the level where the marginal cost of pollution abatement exceeds the marginal benefit of pollution abatement by the greatest amount.
C)the level where the marginal benefit of pollution abatement exceeds the marginal cost of pollution abatement by the greatest amount.
D)none of the above.

Question

The optimal quantity of pollution is:
A)​zero.
B)​the level where the marginal cost of pollution abatement exceeds the marginal benefit of pollution abatement by the greatest amount.
C)​the level where the marginal benefit of pollution abatement exceeds the marginal cost of pollution abatement by the greatest amount.
D)none of the above.

Quizplus · Accepted Answer

The optimal quantity of pollution is where the marginal cost of pollution abatement equals the marginal benefit of pollution abatement, not where one exceeds the other.

The Optimal Quantity of Pollution Is