In Figure (a) above, we can see that as the marginal damage curve rises, representing increased damages for every unit of emissions, the socially optimal level of emissions ___________.

Question

Quizplus · Accepted Answer

As the marginal damage curve rises, it means that the costs of emissions are increasing. Therefore, in order to achieve the maximum social benefit, the level of emissions needs to decrease. This is represented by a movement along the marginal abatement cost curve towards a lower level of emissions.

In Figure (A) Above, We Can See That as the Marginal