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The optimal amount of pollution abatement is generally less than 100%. In what situation would ...

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The optimal amount of pollution abatement is generally less than 100%. In what situation would ...

The optimal amount of pollution abatement is generally less than 100%. In what situation would complete (100%) abatement be optimal?

▸ The marginal cost of abatement is always zero.

▸ The marginal cost of abatement is positive but less than the marginal benefit of abatement.

▸ The marginal cost of abatement exceeds the marginal benefit of abatement at all levels of abatement.

▸ The marginal benefit of abatement is zero.

▸ None of the above - we cannot even imagine a situation in which complete abatement would be optimal.

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Microeconomics

Edition: 17^th

Author: Ragan

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