Asked by Mafutaga Tagoai on May 04, 2024

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The optimum level of pollution emissions:

A) is zero.
B) occurs where the marginal external benefit is zero.
C) occurs where no damage to the environment is being done.
D) occurs where the marginal external benefit equals the marginal external cost.
E) occurs where the marginal external cost equals the marginal cost of abatement.

Marginal External Benefit

Increased benefit that accrues to other parties as a firm increases output by one unit.

Pollution Emissions

The release of pollutants into the environment, typically referring to harmful substances discharged from industries, vehicles, and other sources.

Marginal External Cost

The cost resulting from producing one additional unit of a good that is incurred by someone other than the producer.

  • Determine the optimal level of pollution emissions considering external benefits and costs.
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JS
Jillian StranahanMay 11, 2024
Final Answer :
E
Explanation :
The optimal level of pollution emissions occurs where the marginal external cost equals the marginal cost of abatement. This is because at this point, society is minimizing the costs of reducing pollution and the costs of the damages caused by pollution. Therefore, E is the best choice.