Figure 5-4
-Refer to Figure 5-4.The marginal benefit of reducing pollution curve is the same curve as

Question

Figure 5-4 
-Refer to Figure 5-4.The marginal benefit of reducing pollution curve is the same curve as

Quizplus · Accepted Answer

The marginal benefit of reducing pollution curve represents the willingness to pay for each unit of pollution reduction, which is the same as the demand for pollution reduction curve. Therefore, the answer is B. The supply of pollution reduction curve represents the cost of producing each unit of pollution reduction, the positive externality curve represents the indirect benefits of pollution reduction to society other than the willingness to pay, and the external benefit curve represents the total benefits of pollution reduction to society, including both direct and indirect benefits.

Figure 5-4 -Refer to Figure 5-4.The Marginal Benefit of Reducing Pollution Curve