FIGURE 12-2

-Refer to Figure 12-2, which represents the costs and benefits of pollution control. In the absence of pollution control legislation, at what point will firms spend on pollution-control measures?

Question

FIGURE 12-2
 
-Refer to Figure 12-2, which represents the costs and benefits of pollution control. In the absence of pollution control legislation, at what point will firms spend on pollution-control measures?

Quizplus · Accepted Answer

Firms will spend on pollution-control measures where the marginal cost of pollution control equals the marginal benefit of pollution control without legislation, which is at point P1Q1.

FIGURE 12-2 -Refer to Figure 12-2, Which Represents the Costs and Benefits