The marginal pollution control cost
A) Remains constant with increased environmental quality or cleanup activities
B) Decreases with increased environmental quality or cleanup activities
C) Is constructed by holding constant factors such as the technology of pollution control
D) Shifts up or down when we change the price (damage cost)
E) None of the above

Question

Quizplus · Accepted Answer

The marginal pollution control cost is constructed by holding constant factors such as the technology of pollution control. It does not change with increased environmental quality or cleanup activities and is not influenced by changes in the price (damage cost). Therefore, option A and D are incorrect. Option B is incorrect because the marginal cost of pollution control may increase with increased environmental quality as more advanced and expensive technologies may be required to maintain the desired level of environmental quality.

The Marginal Pollution Control Cost