Is the optimal level of pollution zero Why or why not?

Most people would automatically give the answer that zero pollution would be optimal. However, the optimal level of pollution is not zero; instead, the optimal level is obtained by following our economic decision rule of equating the marginal benefit to the marginal cost.

Why is the optimal amount of pollution likely not zero?

If economic considerations were not taken into account, the socially optimal level of pollution would be zero. This is because no pollution would represent no cost to society. The best level of pollution is the level that existed before industry raised it. The environment naturally pollutes the level it needs to exist.

What should the optimal level of pollution be?

Economic theory suggests that the optimal pollution level occurs when the marginal damage cost equals the marginal abatement cost. The marginal damage shows pollution as a function of emissions of a specific pollutant.

What do you mean by optimal pollution?

The ‘optimal’ level of pollution is the level that yields the maximum net benefits, which occurs when the marginal benefits (MB) are equal to the marginal cost (MC).

Is reducing pollution to zero efficient?

Economists have argued that it is not efficient to reduce pollution to zero. The cost of this reduction would probably exceed the benefits. Waterways and the atmosphere have a natural capacity to assimilate at least some pollution with no associated ill-effects on the environment or humans.

What is the optimal level?

the maximum (highest) level of complexity of a skill that an individual can control, which can be attained only in the most supportive environment.

What is the optimal level of pollution reduction quizlet?

Economists believe that the optimal level of pollution is zero.

How do economists determine the optimal amount of pollution control?

The optimum amount of pollution can be defined as the point where the marginal benefit equals the marginal cost of pollution.