Which of the Following Statements About the Economically Efficient Level

Multiple Choice

Which of the following statements about the economically efficient level of air pollution is correct?

A) The economically efficient level of pollution is zero.
B) The economically efficient level of pollution occurs where all social costs equal all social benefits.
C) The economically efficient level of pollution occurs where the marginal cost of pollution reduction equals the marginal social benefit of reduction.
D) The economically efficient level of pollution occurs where total benefits of pollution reduction are maximized.