Questions for discussion: read the material in Exhibit 3.3 below and answer the three questions presented at the end of the exhibit.

EXHIBIT 3.3 WHAT IS THE MOST DESIRABLE LEVEL OF POLLUTION? Recently, the Society for Zero Pollution sponsored a panel discussion on the topic 'Is zero pollution viable?' The panelists included a well-known environmental economist and a very famous ecologist. Probably to the dismay of their sponsor, both the economist and the ecologist agreed that zero pollution is neither viable nor desirable. On the other hand, both panelists were quite complimentary about the society's efforts to initiate a timely and well-conceived public debate on general issues concerning the environment, and the genuine concern the society has shown for the growing deterioration of our environment. In discussing his view against zero pollution, the ecologist stated that we must not forget that the envi- ronment has a limited ability to process waste. The con- cern for environmental pollution arises only when we emit wastes into the environment beyond its assimila- tive capacity. In his view, therefore, the socially desir- able level of waste discharge (pollution) is that which is consistent with the assimilative capacity of the envi- ronment. In other words, waste emission should not exceed the renewable assimilative capacity of the envi- ronment. In her turn, the economist disputed the assertion made by the ecologist by stating that it is quite consis- tent and rational for society to discharge waste (pol- lute) above and beyond the assimilative capacity of the environment in so far as society collectively values the benefit from the excess pollution (the extra value of the goods and services produced) at more than the cost of the damage to the environmental quality. Hence, the optimal (socially desirable) level of pollution is attained