The Optimal Quantity of Pollution Is

question 182

Multiple Choice

The optimal quantity of pollution is:

• A)​zero.
• B)​the level where the marginal cost of pollution abatement exceeds the marginal benefit of pollution abatement by the greatest amount.
• C)​the level where the marginal benefit of pollution abatement exceeds the marginal cost of pollution abatement by the greatest amount.
• D)none of the above.

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Definitions:

Uniqueness

Refers to the quality of being the only one of its kind; distinctiveness.

Consumer's Budget

is the total amount of income available to an individual or household to spend on goods and services or to save, after taxes.

Elastic Demand

A situation where the quantity demanded of a product changes significantly in response to changes in the product's price.

Inelastic Demand

Refers to a situation where the quantity demanded of a good or service does not significantly change when its price changes.