Figure 18.2.1
-Refer to Figure 18.2.1 above. In which of the following instances is the cost of reducing emissions less the harm done from emissions?
A) When the level of emissions is 6 units
B) When the level of emissions is 12 units
C) When the level of emissions is 18 units
D) In all of the cases above

Question

Figure 18.2.1
-Refer to Figure 18.2.1 above. In which of the following instances is the cost of reducing emissions less the harm done from emissions?
A) When the level of emissions is 6 units 
B) When the level of emissions is 12 units 
C) When the level of emissions is 18 units 
D) In all of the cases above

Quizplus · Accepted Answer

At a level of 18 units of emissions, the cost of reducing emissions is less than the harm done from emissions, as shown by the intersection of the marginal abatement cost curve and the marginal damages curve. At levels of 6 and 12 units, the harm done from emissions outweighs the cost of reducing emissions.

Figure 18.2.1 -Refer to Figure 18.2.1 Above. in Which of the Following