Refer to the figure above. The marginal damages curve slopes upward because
A) higher risks are associated with higher marginal damages, such as negative health effects.
B) the cost of controlling damages increases as the risk of exposure increases.
C) total damages increase as the risk of exposure increase.
D) the technology used to control the damages varies along the curve.

Question

Quizplus · Accepted Answer

The marginal damages curve slopes upward because higher risks are associated with higher marginal damages, such as negative health effects. As the risk of exposure increases, the potential damage inflicted by the exposure also increases. This is reflected in the slope of the marginal damages curve.

Refer to the Figure Above