Net social benefits will always be increased by increasing pollution control if the marginal social benefit of the increase in pollution control is greater than the marginal social cost of additional control efforts.

Question

Quizplus · Accepted Answer

This statement is based on the economic principle of marginal analysis, which compares the marginal social benefit (the additional benefit gained from a small increase in pollution control) to the marginal social cost (the cost of that small increase). If the marginal social benefit is higher than the marginal social cost, it means that society as a whole will be better off by increasing pollution control.

Net Social Benefits Will Always Be Increased by Increasing Pollution