« Senator works to stop Patriot Act reauthorization | Main | What Did He Say? »

Socially Optimal Pollution Levels

"I tell them 'If you learn one thing in this class, learn that zero pollution is not an option.'"

"...And finally, here's an answer that received full credit: 'From an economic persepctive the socially optimal level of pollution occurs when the marginal benefit of the last unit of pollution exactly equals the marginal cost of pollution. At this level the net benefits to society are maximized. If all of the externalities of pollution are accounted for, the resulting level of pollution will be optimal.'"