The Optimal Level of Pollution Occurs Where the Marginal Social

Multiple Choice

The optimal level of pollution occurs where the marginal social benefit is equal to

A) marginal private cost, which equals marginal social cost plus marginal external cost
B) marginal social cost, which equals marginal private cost plus marginal external cost
C) marginal external cost, which equals marginal private cost plus marginal social cost
D) marginal private cost, which equals marginal social cost plus marginal internal cost
E) marginal social cost, which equals marginal private cost plus marginal internal cost