According to Economic Analysis, the Optimal Quantity of Pollution Exists

question 179

Multiple Choice

According to economic analysis, the optimal quantity of pollution exists at the point at which the

• A) total benefit of pollution control is equal to the total cost.
• B) marginal benefit of pollution control is equal to the marginal cost.
• C) level of pollution is at zero.
• D) level of pollution is acceptable to the society.

---

Definitions:

One-Shot Approach

The one-shot approach is a method that attempts to resolve or achieve a particular goal in a single, concentrated effort.

Net Present Value

The variance between cash inflows' present value and cash outflows' present value across a specific timeframe.

Monthly Interest Rate

The proportion of a loan or investment's principal that is charged or earned as interest every month, recalculated based on the period.

Incremental Cash Flow

The additional cash flow a company receives from taking on a new project, important for analyzing the potential profitability of investment opportunities.