If pollution is reduced below the socially efficient level:
A)the marginal cost of pollution abatement exceeds the marginal benefit of pollution abatement.
B)the marginal cost of pollution abatement is less than the marginal benefit of pollution abatement.
C)the marginal cost of pollution abatement equals the marginal benefit of pollution abatement.
D)nothing can be said about the relationship between the marginal cost and marginal benefit of pollution abatement.

Question

If pollution is reduced below the socially efficient level:
A)​the marginal cost of pollution abatement exceeds the marginal benefit of pollution abatement.
B)​the marginal cost of pollution abatement is less than the marginal benefit of pollution abatement.
C)​the marginal cost of pollution abatement equals the marginal benefit of pollution abatement.
D)​nothing can be said about the relationship between the marginal cost and marginal benefit of pollution abatement.

Quizplus · Accepted Answer

Social efficiency is achieved when the marginal cost of pollution abatement is equal to the marginal benefit of pollution abatement. If pollution is reduced below the socially efficient level, it means that the cost of reducing further pollution exceeds the benefits of doing so. Therefore, the marginal cost of pollution abatement exceeds the marginal benefit of pollution abatement.

If Pollution Is Reduced Below the Socially Efficient Level