The marginal principle ________ to the determination of the optimal level of pollution abatement because ________.
A) applies; there are tradeoffs in terms of the costs and benefits of pollution abatement
B) applies; pollution abatement causes greater harm than benefits
C) does not apply; it is immoral to trade a dirtier environment for material wealth
D) does not apply; the costs and benefits of pollution abatement cannot be measured

Question

Quizplus · Accepted Answer

The marginal principle applies to the determination of the optimal level of pollution abatement because there are tradeoffs in terms of the costs and benefits of pollution abatement. This principle suggests that the optimal level of pollution abatement is achieved when the marginal cost of abatement equals the marginal benefit of abatement. In other words, we should continue to reduce pollution until the cost of additional abatement measures is equal to the benefits gained from those measures.

The Marginal Principle ________ to the Determination of the Optimal