Using the concepts we used to determine that "optimal amount," when does it make sense to have zero pollution?Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.aif the marginal cost of pollution reduction is greater than the benefits of eliminating pollutionbif the marginal benefit of pollution reduction is greater than the costs of eliminating pollutioncif the total cost of pollution reduction is greater than the benefits of eliminating pollutiondIt will always make sense to have some pollution.
Question
Using the concepts we used to determine that "optimal amount," when does it make sense to have zero pollution?Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.aif the marginal cost of pollution reduction is greater than the benefits of eliminating pollutionbif the marginal benefit of pollution reduction is greater than the costs of eliminating pollutioncif the total cost of pollution reduction is greater than the benefits of eliminating pollutiondIt will always make sense to have some pollution.
Solution 1
The answer is a) if the marginal cost of pollution reduction is greater than the benefits of eliminating pollution.
Here's why:
The concept of "optimal amount" in economics refers to the point where the marginal benefit equals the marginal cost. In the context of pollution, the marginal benefit is the improvement in health and environmental quality from reducing pollution, while the marginal cost is the expense of implementing pollution reduction measures.
If the marginal cost of reducing pollution is greater than the marginal benefit, it means that the resources spent on reducing pollution could be better used elsewhere. In other words, the cost of eliminating pollution completely would outweigh the benefits. Therefore, in this scenario, it would make sense to have some level of pollution, as long as the cost of reducing it further is higher than the benefit gained from doing so.
Solution 2
The answer is a) if the marginal cost of pollution reduction is greater than the benefits of eliminating pollution. This is because, in economic terms, it only makes sense to reduce pollution to zero if the benefits of doing so outweigh the costs. If the cost of reducing pollution (marginal cost) is greater than the benefits we get from eliminating pollution, then it does not make economic sense to reduce pollution to zero.
Similar Questions
The economically efficient amount of pollution will be zero when which of the following is true?Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.aWhen costs of pollution are greater than the marginal costs of pollution reduction at all levels of pollution.bWhen costs of pollution are less than the marginal costs of pollution reduction at all levels of pollution.cUnder no circumstances. Some pollution is always economically efficient.dUnder all circumstances. It is never economically efficient to have consumers or producers force others to pay the costs of pollution.
The allocatively efficient amount of pollution is the amount where the marginal benefit of pollution control is ______________ the marginal cost of pollution control.Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer.aeither greater than or equal tobjust equal tocgreater thandless than
A new technology has lowered the costs of reducing pollution. As a result, the allocatively efficient amount of pollution will:Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer.adecrease, but there may still be some pollution.bdecrease to an amount where there is no pollution.cincrease, but there may still be some pollution control.dincrease to an amount where there is no pollution control.
Evaluate the statement:The optimum level of pollution emissions occurs where the marginal damage is zero. True False
When there is uncertainty over the marginal cost of pollution abatement, explain when a tax on pollution is preferable to quantity regulation
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