Evaluate the statement:The optimum level of pollution emissions occurs where the marginal damage is zero. True False
Question
Evaluate the statement:
The optimum level of pollution emissions occurs where the marginal damage is zero.
True
False
Solution
False.
Step 1: Understanding Pollution Emissions Pollution emissions refer to the release of harmful substances into the environment, which can cause damage to the air, water, and land, as well as to human health.
Step 2: Understanding Marginal Damage Marginal damage refers to the additional harm caused by emitting one more unit of pollution. It includes the direct costs of pollution, such as health problems and environmental degradation, as well as indirect costs, such as reduced agricultural productivity and property values.
Step 3: Optimum Level of Pollution Emissions The optimum level of pollution emissions does not occur where the marginal damage is zero. If the marginal damage were zero, it would mean that additional pollution is causing no additional harm, which is not possible given the harmful nature of pollution. Instead, the optimum level of pollution emissions is often considered to be the point where the marginal cost of reducing pollution equals the marginal benefit of doing so. This is known as the principle of marginal cost-benefit analysis.
So, the statement "The optimum level of pollution emissions occurs where the marginal damage is zero" is false.
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