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The Optimal Amount of Air Pollution Is

Question 137

Multiple Choice

The optimal amount of air pollution is


A) found by equating the marginal benefits from reducing pollution by one more unit with the marginal costs of reducing pollution by an additional unit.
B) found by equating the total benefits from reducing pollution by one more unit with the total costs of reducing pollution by an additional unit.
C) found by setting the marginal benefits from reducing pollution by one more unit equal to zero.
D) a meaningless concept since we cannot monetize the environment.

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