Figure 5-7

-Refer to Figure 5-7.The marginal benefit of reducing pollution curve is the same curve as

Question

Figure 5-7
 
-Refer to Figure 5-7.The marginal benefit of reducing pollution curve is the same curve as

Quizplus · Accepted Answer

The marginal benefit of reducing pollution curve represents the additional benefit that society receives from each unit of pollution reduction. This is the same as the demand for pollution reduction curve, which represents the willingness of society to pay for each unit of pollution reduction. Therefore, the correct answer is B. The supply of pollution reduction curve represents the cost of producing each unit of pollution reduction, while the positive externality and external benefit curves represent the additional benefits that accrue to third parties as a result of pollution reduction.

Figure 5-7 -Refer to Figure 5-7.The Marginal Benefit of Reducing Pollution Curve