The Optimal Amount of Pollution Abatement Is Generally Less Than

question 24

Multiple Choice

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

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

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