If the Marginal Benefit of Reducing Water Pollution Is Constant

question 128

Multiple Choice

If the marginal benefit of reducing water pollution is constant at $10 per ton, then it is efficient to reduce water pollution

• A)to zero.
• B)until marginal cost of reducing water pollution equals $10 per ton.
• C)as long as the marginal cost of reducing water pollution is greater than $10 per ton.
• D)to whatever level the market determines.

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Definitions:

Linear

A term used to describe something that forms a straight line or a process that proceeds in steps of equal increments.

Downward-Sloping

A term often used to describe a curve or line on a graph that decreases from left to right, indicating a negative relationship between two variables.

Perfectly Elastic

Describes a situation in which the quantity demanded or supplied responds infinitely at a particular price level.

Income Elasticity

A measure of how the demand for a good or service changes in response to changes in consumers' income.