“Pollution should be completely eliminated.” Evaluate. Support your answer using MB and MC analysis
Please provide the best answer for the statement.
This statement is unrealistic. To completely eliminate pollution would incur extraordinary costs to polluting firms and subsequently to society. Moreover it would force pollution abatement to occur at a less than efficient level. The society’s efficient equilibrium is at a level of reducing pollution by 70%. Were the level of abatement to increase to 100%, the marginal cost would be significantly above the marginal benefit of such a high level of abatement. Society would gain more benefits by reducing abatement to the more efficient level of 70%.
You might also like to view...
In the figure above, when the market is in equilibrium, marginal benefit ________ marginal cost, so the quantity of pizza produced is ________
A) equals; efficient B) exceeds; efficient C) is below; efficient D) is below; not efficient E) exceeds; not efficient
Which of the following is an effect of a minimum wage law that establishes a ceiling wage below the current market clearing wage?
A) Surplus labor, or unemployment B) A decrease in the market clearing wage C) A decrease in the quantity of labor supplied D) An increase in the quantity of labor supplied
The inflation rate in the United States has always been positive
a. True b. False
Between the first quarter of 2000 and the first quarter of 2006, the value of housing wealth
A. increased by about $13 trillion per quarter. B. decreased by about $7 trillion per quarter. C. increased by about $500 billion per quarter. D. decreased by about $600 billion per quarter.