Why Is the Optimal Quantity of Pollution Not Less Than

question 270

Multiple Choice

Why is the optimal quantity of pollution not less than the point at which the marginal benefit equals the marginal cost?

• A) The point of intersection occurs at a low level of pollution.
• B) There are no external costs below that level.
• C) Below that point firms will have to reduce the quantity that they are currently producing and lower the price.
• D) Below that point the value that people place on less pollution is less than the cost of reducing the pollution.

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Definitions:

Density

This physical property represents the ratio of an object's mass to its volume, showing how tightly matter is packed within it.

Volume

The amount of space that an object or substance occupies, expressed in cubic units.

Density

A measure of mass per unit volume of a substance, commonly expressed in grams per cubic centimeter for solids and liquids, and kilograms per cubic meter for gases.

Volume

The amount of space occupied by an object or substance, often measured in liters, cubic meters, or gallons.