The government should choose pollution abatement for all sources of pollution where the marginal benefit exceeds the marginal cost of that action.

Question

Quizplus · Accepted Answer

This statement aligns with the principle of economic efficiency, where actions should be taken up to the point where the marginal benefit equals the marginal cost. If the marginal benefit of pollution abatement exceeds the marginal cost, it indicates that the action would yield net positive benefits to society, making it a desirable choice.

The Government Should Choose Pollution Abatement for All Sources of Pollution