Asked by Ashia Arnold on Jul 26, 2024
Verified
The optimal pollution level is found where the marginal social benefit of polluting equals the marginal social cost of polluting.
Marginal Social Benefit
The additional gain to society as a whole from consuming or producing one more unit of a good or service.
Marginal Social Cost
The additional cost imposed on society as a whole by producing one extra unit of a good or service.
- Gain an understanding of external influences and their significance for social welfare.
Verified Answer
BZ
Benny ZhuangJul 28, 2024
Final Answer :
True
Explanation :
The optimal level of pollution is considered to be at the point where the marginal social benefit of polluting (such as economic benefits from industrial activity) equals the marginal social cost of polluting (such as health and environmental damages), ensuring that the net social welfare is maximized.
Learning Objectives
- Gain an understanding of external influences and their significance for social welfare.