What is the most likely outcome when trying to eliminate pollution?
A) Abatement will exhibit diminishing returns.
B) Abatement will be subject to diminishing average cost.
C) Firms will increase output in the short run.
D) Public opinion will matter more to firms than profit maximization.

Question

Quizplus · Accepted Answer

When trying to eliminate pollution, the most likely outcome is that abatement will exhibit diminishing returns. This means that as more effort is put into eliminating pollution, the cost of reducing it further will increasingly outweigh the benefits, resulting in diminishing returns. It becomes harder and harder to reduce pollution as we approach zero emissions.

What Is the Most Likely Outcome When Trying to Eliminate