The marginal cost to society of reducing pollution increases as the level of pollution reduction increases because of the law of

Question

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Diminishing returns dictate that as a company increases its pollution-reducing efforts, the marginal cost of each additional unit of reduction will eventually exceed the marginal benefit. Essentially, the cost of each unit of pollution reduction will begin to rise, and the benefits will begin to diminish. For example, a company may first reduce pollution by installing a filter on its smokestack, which may be a relatively straightforward and inexpensive process. However, as the company continues to reduce pollution, it may need to implement more complex and costly methods of pollution reduction, which will increase the marginal cost.

The Marginal Cost to Society of Reducing Pollution Increases as the Level