From an Economic Viewpoint, the Optimal Amount of Pollution

question 63

Multiple Choice

From an economic viewpoint, the optimal amount of pollution:

• A) is zero since all pollution imposes costs on society.
• B) is that amount which firms create when they maximize economic profits by setting their marginal private costs equal to market price.
• C) is that amount where the marginal social costs of producing a good precisely equals the price of the good.
• D) b and c are correct.

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