The Optimal Level of Pollution Is

question 180

Multiple Choice

The optimal level of pollution is

• A)zero
• B)the level at which the marginal social cost of air quality equals the marginal social benefit
• C)the level at which the average social cost of air quality equals the average social benefit
• D)the level at which the total social cost of air quality equals the total social benefit
• E)the level at which the marginal social cost of air quality is minimized

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Definitions:

Marginal Revenue

The supplementary earnings obtained from the sale of one more unit of a product or service.

Revenue Curves

Graphs showing the relationship between the sales volume and the revenue generated from those sales.

Elastic Portion

The segment of a demand curve where the quantity demanded changes significantly as a result of price changes, indicating high price elasticity of demand.

Demand Curve

A graphical representation showing the relationship between the price of a good or service and the quantity demanded by consumers at those prices.