Question

Which of the following is not an accurate way of stating the optimal level of pollution?

		At the optimal level of pollution, the total cost (including social cost) of another unit of production should not exceed the benefit of that production.
		At the optimal level of pollution, the benefit of abating another unit of pollution should not exceed the cost of abating that unit of pollution.
		At the optimal level of pollution, the marginal benefit of emissions should be equal to the marginal cost of production.
		All of the above are definitions for the optimal level of pollution.

Answer 1

Answer - correct option is B

Reason - At optiomal level of pollution , cost of abating should be equal to benefit .If benefits exceed than cost than it means that society is in state of reducing the pollution but if cost exceeds the benefit then it means that it is not the optimal state of pollution hence option is B is correct which says at optimal level of pollution the benefit of abating another unit of pollution must not exceed the cost of abating .This statement is false