The Efficient Level of Pollution Is the Quantity at Which

question 83

Multiple Choice

The efficient level of pollution is the quantity at which:

• A)its total benefits exceed its total costs to society by the greatest possible amount.
• B)its total benefits to society equal its total costs to society.
• C)the marginal social benefit of an additional unit of pollution is greater than the marginal social cost of the additional unit.
• D)the marginal social benefit of an additional unit of pollution is less than the marginal social cost of the additional unit.

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Definitions:

Marginal Cost Curves

Graphs that depict how the cost of producing one more unit of a good changes as production increases.

Profit Maximizing

The process or strategy of adjusting production and operation levels to achieve the highest possible profit.

Shutdown Condition

A criterion in economics indicating the point at which a firm's revenue is not sufficient to cover its variable costs, prompting it to cease operations.

Marginal Cost Curve

A curve that graphically represents the cost of producing one additional unit of a good, typically illustrating how marginal cost varies with the quantity produced.