The Marginal Cost to Society of Reducing Pollution Increases with the Increased

question 296

Multiple Choice

The marginal cost to society of reducing pollution increases with the increased use of pollution abatement because

• A) of the diminishing marginal utility of abatement.
• B) of the reduced demand for abatement.
• C) of the diminishing returns from abatement.
• D) of the high cost of abatement.

---

Definitions:

Concentration Ratio

A measurement of the market share or output controlled by the largest firms within an industry, used to assess the level of competition.

Costly to Ship

Refers to items or materials that are expensive to transport, typically because of their weight, size, or special handling requirements.

Degree of Monopoly

Measures the level of market control and price-setting power possessed by a monopolist.

Very Localized

Referring to something that is confined to a very small or specifically defined geographic area or community.