Reducing automobile pollution beyond a certain point is not efficient when:
A)the marginal benefit from reduced pollution is less than the marginal cost of reducing the pollution.
B)the marginal cost of reducing pollution is less than the marginal benefit from reduced pollution.
C)the marginal private cost of producing automobiles is less than the marginal social cost.
D)the marginal external cost of pollution is zero.

Question

Quizplus · Accepted Answer

When the marginal cost of reducing pollution becomes greater than the marginal benefit from reduced pollution, further efforts to reduce pollution become inefficient. This is because the additional cost of reducing pollution is greater than the benefit it provides, leading to a decrease in overall economic efficiency.

Reducing Automobile Pollution Beyond a Certain Point Is Not Efficient