For society as a whole, the optimal amount of pollution control exists when:
A)the marginal cost of pollution reduction is equal to the marginal benefit of the pollution reduction.
B)firms are allowed to produce as much pollution as necessary to make the goods people want.
C)the marginal costs of pollution clean up exceed the benefits.
D)no pollution is permitted at all.

Question

For society as a whole, the optimal amount of pollution control exists when:
A)​the marginal cost of pollution reduction is equal to the marginal benefit of the pollution reduction.
B)​firms are allowed to produce as much pollution as necessary to make the goods people want.
C)​the marginal costs of pollution clean up exceed the benefits.
D)​no pollution is permitted at all.

Quizplus · Accepted Answer

The optimal amount of pollution control is when the marginal cost of pollution reduction equals the marginal benefit of the pollution reduction. This means that the cost of reducing pollution is equal to the benefits gained from reducing pollution. Any further reduction in pollution would cost more than the benefits gained, and any increase in pollution would come at a cost greater than the benefits lost. Therefore, society as a whole benefits the most when pollution control is at this optimal level.

For Society as a Whole, the Optimal Amount of Pollution