In which of the following situations should a firm reduce its efforts to abate pollution?
A) The marginal benefit of abatement is less than its marginal cost.
B) The marginal benefit of abatement is greater than its marginal cost.
C) The marginal benefit of abatement is equal to its marginal cost.
D) none of the above

Question

Quizplus · Accepted Answer

A firm should reduce its efforts to abate pollution when the marginal benefit of abatement is less than its marginal cost, indicating that the cost of reducing pollution outweigh the benefits. At this point, the firm has reached its optimal level of abatement, and any further effort will result in a net loss.

In Which of the Following Situations Should a Firm Reduce