In general, if the level of pollution is reduced to zero, then:
A) marginal cost of abatement is less than marginal cost of damages.
B) marginal cost of abatement is equal to marginal cost of damages.
C) economic efficiency is achieved.
D) economic efficiency is not achieved.

Question

Quizplus · Accepted Answer

Reducing pollution to zero often involves very high costs, potentially exceeding the benefits of removing the last units of pollution. This scenario typically does not represent economic efficiency, as resources could be used more effectively elsewhere. Economic efficiency is generally achieved when the marginal cost of abatement equals the marginal benefit (or marginal cost of damages), not necessarily at zero pollution.

In General, If the Level of Pollution Is Reduced to Zero