Which of the Following Statements Is TRUE About the Optimal

Multiple Choice

Which of the following statements is TRUE about the optimal quantity of pollution?

A) It equals zero.
B) Pollution abatement should continue up to the point where marginal cost equals the average total cost.
C) Trade-offs exist between producing a cleaner environment and producing other goods and services.
D) Firms should be allowed to determine the profit-maximizing amount of pollution abatement.