The optimal level of pollution reduction is that level at which
A)the total benefits of pollution reduction exceeds the total cost of pollution reduction by the largest amount.
B)the total benefits of pollution reduction equal the total cost of pollution reduction.
C)the marginal benefit of pollution reduction exceeds the marginal cost of pollution reduction by the largest amount.
D)the additional benefit of the last unit of pollution reduction equals the additional cost of the last unit of pollution reduction.
E)both a and d

Question

Quizplus · Accepted Answer

The optimal level of pollution reduction is where the total benefits exceed the total costs by the largest amount (answer choice A), which also means that the additional benefit of the last unit of pollution reduction equals the additional cost of the last unit of pollution reduction (answer choice D). Therefore, the correct answer is E, which includes both choices A and D.

The Optimal Level of Pollution Reduction Is That Level at Which