Posted by sue on .
Assuming that pollution cannot be removed from the environment at zero cost, the optimal level of pollution
will be negative, positive,zero or marginally incremental for additional pollution ?
I think I know the answer, I just need another opinion.
Let me know what you think Please....
College Micro Econ -
Optimal pollution will certainly be positive. (I'm not sure what "marginally incremental for additional pollution" means.) That said, optimal pollution will occur where the marginal cost of removal equals the marginal benefit (to society).