The Marginal Benefit of Reducing Pollution in Some Industry May

question 68

Multiple Choice

The marginal benefit of reducing pollution in some industry may be expected to

• A)rise as the level of pollution gets closer to zero.
• B)remain constant for all levels of pollution control.
• C)exceed the marginal cost of pollution reduction for all positive levels of pollution.
• D)fall as the amount of pollution abatement undertaken rises.
• E)be always greater than the marginal cost of pollution reduction.

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Definitions:

Input

Resources used in the production process to generate goods or services, including labor, raw materials, and capital.

Output

The total amount of goods or services produced by a company, sector, or economy within a specific time period.

Isoquants

Curves that represent all the combinations of two inputs that produce the same level of output, used in the analysis of production technology.

Production Function

A mathematical representation of the relationship between input factors of production and the output of goods or services.