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:

Breaks Even

A financial situation where total revenues are equal to total costs, resulting in no profit or loss.

Short Run

A period in economics where at least one factor of production is fixed, influencing the responsiveness of a company to changes in market demand.

Marginal Revenue

The additional income earned from selling one more unit of a product or service.

Average Total Cost

The total cost of production divided by the total quantity produced, representing the cost per unit of output.