A Downward-Sloping Marginal Benefit Curve for Pollution Abatement Means That

question 101

Multiple Choice

A downward-sloping marginal benefit curve for pollution abatement means that

• A)the costs of pollution decrease as further amounts are abated.
• B)the marginal cost of pollution reduction will always exceed the marginal benefit.
• C)it is impossible to know the benefits from additional increments of pollution abatement.
• D)society views additional increments of pollution abatement as unnecessary.
• E)there are decreasing incremental benefits to be realized from additional increments of pollution abatement.

---

Definitions:

Balance Sheet

A financial statement that displays a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of its financial position.

Current Assets

Refers to assets that are expected to be converted into cash or used up within one year or in the operating cycle of the business, whichever is longer.

Current Liabilities

A company's debts or obligations that are due to be paid to creditors within one year.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term liquidity of the company.