Use the following to answer question(s): Pollution Abatement and Emissions

-(Exhibit: Pollution Abatement and Emissions) The level of emissions in a market for which none of the costs of pollution were faced by producers would be closest to
A) R.
B) S.
C) T.
D) U.

Question

Use the following to answer question(s): Pollution Abatement and Emissions
 
-(Exhibit: Pollution Abatement and Emissions) The level of emissions in a market for which none of the costs of pollution were faced by producers would be closest to
A) R. 
B) S. 
C) T. 
D) U.

Quizplus · Accepted Answer

Point D represents the level of emissions in a market where none of the costs of pollution are faced by producers. This is because at point D, the marginal cost of abatement (MCa) is zero and the marginal benefit of abatement (MBa) is also zero, so the producers have no incentive to reduce emissions.

Use the Following to Answer Question(s): Pollution Abatement and Emissions