If the marginal cost of reducing pollution is positive, then:
A)pollution should be reduced as much as technically feasible.
B)the marginal benefit of reducing pollution is zero.
C)the optimal amount of pollution is zero.
D)the optimal amount of pollution is greater than zero.

Question

Quizplus · Accepted Answer

Pollution should be reduced until the marginal benefit of reducing pollution equals the marginal cost of reducing pollution. If the marginal cost of reducing pollution is positive, then the marginal benefit of reducing pollution should be positive too, implying that the optimal amount of pollution is greater than zero.

If the Marginal Cost of Reducing Pollution Is Positive, Then