The marginal beneﬁt to society of reducing pollution declines with increases in pollution abatement because of the law of
A) increasing costs.
B) diminishing returns.
C) diminishing marginal utility.
D) conservation of matter and energy.

Question

Quizplus · Accepted Answer

The law of diminishing marginal utility states that as more of a good or service is consumed, the additional benefit from consuming an additional unit decreases. This concept applies to pollution abatement, where the initial reductions provide significant benefits, but further reductions yield smaller incremental benefits.

The Marginal Beneﬁt to Society of Reducing Pollution Declines with Increases