The total cost of pollution control is minimized when the marginal control costs are the
same for all the firms engaged in pollution control activities.

Question

The total cost of pollution control is minimized when the marginal control costs are the
 same for all the firms engaged in pollution control activities.

Quizplus · Accepted Answer

This statement is correct. If the marginal control costs are different for firms, some firms may end up spending more on pollution control than others, which would not be efficient. Ideally, all firms should face the same marginal control costs for pollution control to be optimized.

The Total Cost of Pollution Control Is Minimized When the Marginal