In Economic Analysis, the Optimal Level of Pollution

question 165

Multiple Choice

In economic analysis, the optimal level of pollution

• A) is always zero.
• B) arises at the point at which the marginal benefit from further reduction equals the marginal cost of further reduction.
• C) occurs at the point at which demand crosses the private cost supply curve.
• D) should be determined by the private market without any government intervention.

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Definitions:

Percent

A ratio or fraction expressed as a part of 100, used to denote proportionate amounts in calculations and comparisons.

Percentage Change

The proportional difference between two values, typically expressed as a percentage.

Grams

A metric unit of mass equal to one thousandth of a kilogram.

Suggested Retail Price

The retail price recommended by the manufacturer for the sale of a product to consumers.