The Socially Optimal Pollution Is

question 283

Multiple Choice

The socially optimal pollution is

• A) zero.
• B) where marginal abatement costs are zero.
• C) where the marginal benefits of pollution abatement equal its marginal costs.
• D) where marginal benefits of pollution abatement are maximized.

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Definitions:

Communications Network

A system of interconnected digital or analog devices and channels used for the purpose of exchanging information.

Willingness to Pay

The maximum amount an individual is ready to sacrifice to acquire a good or service or to avoid something undesirable.

Proportional

A relationship or ratio between two quantities where one is directly proportional to the other.

Communications Network

A system of interconnected computers, telephones, or other devices that allow for the exchange of data and information.