The optimal level of pollution is achieved when ________________________.

Question

The marginal benefit of controlling pollution is greater than the marginal cost.

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

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

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

Answer 1

The optimal level of pollution is achieved when the marginal benefit of controlling pollution is equal to the marginal cost. This condition ensures that the resources allocated to pollution control are used efficiently, balancing the benefits gained from reducing pollution with the costs incurred in doing so.