If the marginal benefit of reducing emissions of some air pollutant is greater than the marginal cost,
A)further reductions will make society better off.
B)the marginal benefit will rise and the marginal cost will fall as further reductions are made.
C)economic efficiency will be achieved when emissions are reduced to zero.
D)private businesses, rather the consumers, should be made to pay for the cost of further reductions.

Question

Quizplus · Accepted Answer

When the marginal benefit exceeds the marginal cost, it means that society is gaining net benefits from further reductions in the air pollutant. Therefore, it would be desirable to continue reducing emissions until the marginal benefit equals the marginal cost. This would result in society being better off than if no further reductions were made.

If the Marginal Benefit of Reducing Emissions of Some Air