The optimal level of pollution is achieved when __________.

pollution does not exist

the marginal benefit of controlling pollution is less than the marginal cost

the average benefit of controlling pollution is equal to the marginal cost

the marginal benefit of controlling pollution is equal to the marginal cost

1 answer

The optimal level of pollution is achieved when the marginal benefit of controlling pollution is equal to the marginal cost. This is where society maximizes its net benefits; any further control would incur higher costs than the benefits received, and any less control would result in lost benefits from pollution reduction.