The efficient level of pollution abatement is greater The higher the marginal so
ID: 1140342 • Letter: T
Question
The efficient level of pollution abatement is greater
The higher the marginal social benefit of abatement function and the lower the marginal social benefit of abatement function.
The higher the marginal social benefit of abatement function and the higher the marginal social benefit of abatement function.
The lower the marginal social cost of abatement function and the lower the marginal social cost of abatement function.
The lower the marginal social benefit of abatement function and the lower the marginal social benefit of abatement function.
a.The higher the marginal social benefit of abatement function and the lower the marginal social benefit of abatement function.
b.The higher the marginal social benefit of abatement function and the higher the marginal social benefit of abatement function.
c.The lower the marginal social cost of abatement function and the lower the marginal social cost of abatement function.
d.The lower the marginal social benefit of abatement function and the lower the marginal social benefit of abatement function.
Explanation / Answer
Since the efficient level of pollution abatement will occurs at a point where the marginal social benefit of abatement and the marginal social cost of abatement intersects or are equal. Since it is stated in the question that The efficient level of pollution abatement should be greater and it is possible only when the marginal social benefit of abatement function is lower and the marginal social cost of abatement function is lower and both intersect at lower level. Then the efficient level of pollution abatement will be higher.
Hence it can be said that the efficient level of pollution abatement is greater the lower the marginal social cost of abatement function and the lower the marginal social cost of abatement function.
Hence option c is the correct answer.
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