Which of the Following Is True in Regard to the Optimal

Multiple Choice

Which of the following is true in regard to the optimal level of pollution?

A) What is cheapest for private firms would not be cheapest for society as a whole.
B) With respect to the damage costs there will be a divergence between private and
social costs.
C) In general, the tendency is for private firms to totally ignore the damage costs.
D) In most instances, the economic optimum is associated with a positive level of
pollution emission.
E) All of the above are true.