Figure 5-7

-Refer to Figure 5-7.The marginal cost of reducing pollution curve is the same curve as
A)the supply of pollution reduction curve.
B)the demand for pollution reduction curve.
C)the negative externality curve.
D)the value of pollution reduction curve.

Question

Figure 5-7
 
-Refer to Figure 5-7.The marginal cost of reducing pollution curve is the same curve as
A)the supply of pollution reduction curve. 
B)the demand for pollution reduction curve. 
C)the negative externality curve. 
D)the value of pollution reduction curve.

Quizplus · Accepted Answer

The marginal cost of reducing pollution curve represents the additional cost incurred by firms to reduce pollution. This cost is similar to the cost of producing any other good or service, and as such, the curve follows the same principles as the supply curve. As the cost of pollution reduction increases, fewer firms will be willing to invest in it, leading to a decrease in the quantity of pollution reduction. Hence, the correct answer is A) the supply of pollution reduction curve.

Figure 5-7 -Refer to Figure 5-7.The Marginal Cost of Reducing Pollution Curve