In the Presence of Pollution,social Welfare Is Maximized by

question 17

Multiple Choice

In the presence of pollution,social welfare is maximized by

• A)reducing output and pollution until marginal benefit of less pollution is equal to the marginal cost of less output.
• B)reducing output and pollution until the benefit curve (of less pollution)and cost curve (of less output)intersect.
• C)reducing output and pollution until the benefits of pollution reduction just cover the costs of output reduction.
• D)None of the above.