In economics, the optimal level of pollution is
A) zero.
B) the level for which the net benefit from reducing the pollution is greatest.
C) the level for which the total benefit from reducing the pollution is greatest.
D) the level which generates a positive externality.
B
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How are money cost and opportunity cost related to each other?
a. If markets function well, they are closely related. b. They are always identical in any economic system. c. Opportunity cost always exceeds money cost. d. Money cost is less than or equal to opportunity cost. e. In a market economy, they are always equal to each other.
A game in which each player adopts its dominant strategy
A) will not lead to an equilibrium. B) must be a cooperative game. C) could result in a Nash equilibrium. D) can never result in a Nash equilibrium.