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The Table Below Shows the Marginal Benefit and Marginal Cost

Question 85

Multiple Choice

The table below shows the marginal benefit and marginal cost of pollution abatement for an economy.  Units of  Pollution  Abatement MBMC1120521151531053049050570706459571512580155\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Units of } \\\text { Pollution } \\\text { Abatement }\end{array} & \mathrm { MB } & \mathrm { MC } \\\hline 1 & 120 & 5 \\\hline 2 & 115 & 15 \\\hline 3 & 105 & 30 \\\hline 4 & 90 & 50 \\\hline 5 & 70 & 70 \\\hline 6 & 45 & 95 \\\hline 7 & 15 & 125 \\\hline 8 & 0 & 155 \\\hline\end{array} TABLE 17- 1
-An upward- sloping marginal cost curve for pollution abatement means that


A) the marginal benefit of pollution reduction will increase with additional increments of pollution reduction.
B) society views additional increments of pollution reduction as absolutely necessary.
C) additional increments of pollution abatement will yield decreasing benefits.
D) it is impossible to know the benefits from additional increments of pollution reduction.
E) the cost of an extra unit of pollution abatement will increase as the total amount of abatement rises.

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