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sam3359 sam3359
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A year ago

The figure below shows the demand and supply curves for pollution abatement for a firm.

Short description: A demand graph plots the marginal benefit and marginal cost in the case of pollution abatement. Long description: In the graph, the horizontal axis denotes pollution abatement, while the vertical axis denotes dollars per unit. An increasing curve M C and a decreasing curve M B are drawn, which intersect at a point where the abatement is Q asterisk. The endpoint of M B line is where the abatement is Q superscript t, marked 100 percent abatement. The MC line ends before the MB line.

FIGURE 17-3

Refer to Figure 17-3. The MB curve in this diagram is downward sloping because



▸ the marginal cost of additional units of pollution abatement increases as pollution abatement increases.

▸ the marginal cost of additional units of pollution abatement is decreasing.

▸ the marginal benefit from a given amount of abatement will be lower, the lower the level of pollution.

▸ the marginal damage generated by additional units of pollution is decreasing.

▸ the marginal benefit from a given amount of abatement will be higher, the higher the level of pollution abated.
Textbook 
Microeconomics

Microeconomics


Edition: 17th
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SirangelouSirangelou
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A year ago
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sam3359 Author
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A year ago
Correct Slight Smile TY
klyn
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Yesterday
Thanks for your help!!
husne
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2 hours ago
Brilliant ツ
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