If the Marginal Damage Caused by a Certain Type of Pollution

question 245

Multiple Choice

If the marginal damage caused by a certain type of pollution is $100 billion and the marginal cost of abatement is $180 billion, then

• A) society would be better off with zero pollution.
• B) society would be better off if emissions were increased.
• C) command and control policies should always be used.
• D) society would be better off if emissions were reduced.

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