If pollution levels exceed the socially efficient level:
A)the marginal cost of pollution abatement exceeds the marginal benefit of pollution abatement.
B)the marginal cost of pollution abatement is less than the marginal benefit of pollution abatement.
C)the marginal cost of pollution abatement equals the marginal benefit of pollution abatement.
D)nothing can be said about the relationship between the marginal cost and marginal benefit of pollution abatement.

Question

If pollution levels exceed the socially efficient level:
A)​the marginal cost of pollution abatement exceeds the marginal benefit of pollution abatement.
B)​the marginal cost of pollution abatement is less than the marginal benefit of pollution abatement.
C)​the marginal cost of pollution abatement equals the marginal benefit of pollution abatement.
D)​nothing can be said about the relationship between the marginal cost and marginal benefit of pollution abatement.

Quizplus · Accepted Answer

When pollution levels exceed the socially efficient level, it means that the cost to society of the pollution (in terms of health effects, environmental degradation, etc.) is greater than the cost of reducing (abating) that pollution. Therefore, the marginal benefit of reducing pollution (such as improved health, cleaner environment) is greater than the marginal cost of taking actions to reduce the pollution.

If Pollution Levels Exceed the Socially Efficient Level