The marginal cost to society of reducing pollution rises with increases in pollution abatement because of the law of
A) diminishing marginal utility.
B) conservation of matter and energy.
C) demand.
D) diminishing returns.

Question

Quizplus · Accepted Answer

The law of diminishing returns states that as more and more resources are devoted to a particular production process, the marginal increase in output will eventually decrease. In the case of pollution abatement, as more resources are devoted to reducing pollution, the marginal cost of further pollution reduction increases due to diminishing returns. Therefore, choice D, diminishing returns, is the correct answer. The other choices, including A) diminishing marginal utility, B) conservation of matter and energy, and C) demand, may not be directly relevant to the concept of marginal cost in this context.

The Marginal Cost to Society of Reducing Pollution Rises with Increases