Does pollution exist at QE (Quantity of pollution-generated goods) ? If yes, give an economic justification...
Does pollution exist at QE (Quantity of pollution-generated goods) ? If yes, give an economic justification for it.(With Graphic Explanation)
Homework Answers
firm
produces the efficient quantity only when demand is equal to the
SMC.
It accounts for the external cost as well.
It does not mean that pollution level is zero. But cost of pollution is not higher than the benefits that accrue from production.
Hence firm must operate at this level.
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Does pollution exist at QE (Quantity of
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