If the Marginal Benefit of Reducing Emissions of Some Air

question 241

Multiple Choice

If the marginal benefit of reducing emissions of some air pollutant is greater than the marginal cost,

• A)further reductions will make society better off.
• B)the marginal benefit will rise and the marginal cost will fall as further reductions are made.
• C)economic efficiency will be achieved when emissions are reduced to zero.
• D)private businesses, rather the consumers, should be made to pay for the cost of further reductions.

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Definitions:

Lessor

An entity that leases property or equipment to another party, known as the lessee, under a lease agreement.

Debt-Related Restrictions

These are covenants or conditions included in loan agreements that limit certain actions of the borrower to protect the lender.

Tax-Reduction

Strategies or actions taken to minimize the amount of taxes owed by an individual or corporation.

Asset Cost

The total amount invested to acquire, produce, or improve a tangible or intangible asset, utilized for accounting and tax purposes.