In order to minimize the net cost of pollution reduction, the level of pollution

Question

In order to minimize the net cost of pollution reduction, the level of pollution reduction (the amount of a pollutant not released into the environment) should be the level at which
a) the marginal benefit of reducing pollution exceeds the marginal cost of reducing pollution by the greatest possible amount.
b.) the total benefit of reducing pollution equals the total cost of reducing pollution.
c.) the marginal benefit of reducing pollution equals the marginal cost of reducing pollution.
d.) the total cost of reducing pollution is minimized and the total benefits of reducing pollution are maximized.

Explanation / Answer

C. Really, MR = MC is probably the most important economics equation there is. Whenever MR = MC is true, it means you've maximized any potential profits or minimized any potential losses.

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