If electric utilities continually reduce their emissions of sulfur dioxide,
A)the utilities will eventually be forced to go out of business.
B)the marginal benefit of additional emissions will rise.
C)the marginal cost of further emissions will rise.
D)the total benefit of sulfur dioxide emissions will fall.

Question

Quizplus · Accepted Answer

As electric utilities continually reduce their emissions of sulfur dioxide, they will eventually reach a point where it becomes increasingly difficult and expensive to make further reductions. This means that the marginal cost of reducing emissions will rise. At the same time, as emissions are reduced, the negative effects of sulfur dioxide on the environment and human health will decrease, leading to a decrease in the total benefit of sulfur dioxide emissions. Therefore, option C, the marginal cost of further emissions will rise, is the best choice.

If Electric Utilities Continually Reduce Their Emissions of Sulfur Dioxide