Incremental costs
A) are the total costs of abatement and regulation linked to environmental policy
B) include only explicit costs
C) refer to the change in costs associated with an environmental policy initiative
D) include only implicit costs

Question

Quizplus · Accepted Answer

Incremental costs refer to the change in costs associated with an environmental policy initiative. It includes both explicit and implicit costs, which are the additional costs incurred to implement the policy. So, option A and D are incorrect as they only include explicit or implicit costs.

Incremental Costs