If the marginal benefit of reducing emissions of some air pollutant is less than the marginal cost,
A)further reductions will make society better off.
B)further reduction will make society worse off.
C)pollution taxes should be imposed on producers to pay for further reductions.
D)economic efficiency will be increased if further reductions are made.

Question

Quizplus · Accepted Answer

If the marginal benefit of reducing emissions of some air pollutant is less than the marginal cost, it means that the cost of reducing emissions further is greater than the benefit society would gain from that reduction. Therefore, further reduction will make society worse off. It may be more efficient to allocate resources to other areas that provide greater marginal benefits.

If the Marginal Benefit of Reducing Emissions of Some Air