The Optimal Amount of Pollution Abatement Is Generally Less Than

question 97

Multiple Choice

The optimal amount of pollution abatement is generally less than 100 percent. Complete (100 percent ) abatement would be optimal if

• A) the marginal cost of abatement is always zero.
• B) the marginal cost of abatement exceeds the marginal benefit of abatement at all levels of abatement.
• C) the marginal benefit of abatement is zero.
• D) the marginal cost of abatement is positive but less than the marginal benefit of abatement.
• E) none of the above -- we cannot even imagine a situation in which complete abatement would be optimal.

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