1. Given the general agreement that pollution is undesirable and social welfare

Question

1. Given the general agreement that pollution is undesirable and social welfare is increased by reducing pollution, the optimal level of pollution in a society is: a. zero. b. the level at which the marginal social cost is equal to the marginal social benefit. c. the level that reduces the marginal social costs of pollution to zero. d. the level that minimizes the average total cost of producing the product that generates the pollution. 1. Given the general agreement that pollution is undesirable and social welfare is increased by reducing pollution, the optimal level of pollution in a society is: a. zero. b. the level at which the marginal social cost is equal to the marginal social benefit. c. the level that reduces the marginal social costs of pollution to zero. d. the level that minimizes the average total cost of producing the product that generates the pollution.

Explanation / Answer

Given the general agreement that pollution is undesirable and social welfare is increased by reducing pollution, the optimal level of pollution in a society is the level at which the marginal social cost is equal to the marginal social benefit.

So, option b is correct.

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