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If the marginal benefit of reducing emissions of some air pollutant is greater than the marginal cost

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If the marginal benefit of reducing emissions of some air pollutant is greater than the marginal cost

Question 1.

If electric utilities continually reduce their emissions of sulfur dioxide

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the total benefit of sulfur dioxide emissions will fall.

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the marginal cost of further emissions will rise.

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the marginal benefit of additional emissions will rise.

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the utilities will eventually be forced to go out of business.

Question 2.

If the marginal benefit of reducing emissions of some air pollutant is greater than the marginal cost

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the marginal benefit will rise and the marginal cost will fall as further reductions are made.

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private businesses, rather the consumers, should be made to pay for the cost of further reductions.

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economic efficiency will be achieved when emissions are reduced to zero.

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further reductions will make society better off.

Textbook

InMicro

Edition: 1^st

Authors: Hubbard, O'Brien

Read 90 times

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Bakari

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More solutions for this book are available here

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