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To achieve an optimal level of clean air, which strategy should the chemical manufacturing company implement?

Increase production levels

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Decrease pollution until the benefit of clean air equals the cost of producing clean air

To achieve an optimal level of clean air, the strategy of decreasing pollution until the benefits of clean air equal the costs of producing clean air is sound. This approach is rooted in the principles of cost-benefit analysis, where the goal is to find the balance where the marginal cost of reducing pollution matches the marginal benefits derived from cleaner air.

By focusing on this equilibrium, the company can assess the economic implications of pollution reduction measures. If the cost of implementing technologies or processes to reduce emissions is lower than the value generated from cleaner air—such as improved public health, compliance with regulations, and potential boosts in productivity due to a healthier workforce—then the company can justify making those changes.

This strategy not only adheres to environmental standards but also considers the financial implications, ensuring that the company does not overspend while aiming for sustainability. It is a rational approach for managing resources effectively, promoting both environmental responsibility and economic viability.

This is more effective than simply increasing production levels or investing in advertising, as those strategies do not directly address pollution concerns. Purchasing carbon credits is also a potential strategy, but it may not lead to a direct reduction in the company's own pollution output and may only shift the responsibility to other areas instead of achieving a long-term optimal level of

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Purchase carbon credits

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