If the Marginal Cost of Reducing Pollution Is Positive

question 103

Multiple Choice

If the marginal cost of reducing pollution is positive:

• A)it should be reduced as much as technically feasible.
• B)the marginal benefit is nearly zero.
• C)the optimal amount of pollution is zero.
• D)the optimal amount of pollution is greater than zero.

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Definitions:

Labor Market

A market where employers find workers and workers find jobs, characterized by supply and demand for labor.

Marginal Expenditure Curve

A graphical representation that shows how total expenditure changes as the quantity of a good or service purchased varies.

Economic Rents

Earnings in excess of the economically or socially necessary cost of bringing a factor of production into use.

Supply Curve

A graphical representation showing the relationship between the price of a good or service and the quantity of that good or service that a supplier is willing and able to supply.