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A new technology has lowered the costs of reducing pollution. As a result, the allocatively efficient amount of pollution will:Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer.adecrease, but there may still be some pollution.bdecrease to an amount where there is no pollution.cincrease, but there may still be some pollution control.dincrease to an amount where there is no pollution control.

Question

A new technology has lowered the costs of reducing pollution. As a result, the allocatively efficient amount of pollution will:Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer.adecrease, but there may still be some pollution.bdecrease to an amount where there is no pollution.cincrease, but there may still be some pollution control.dincrease to an amount where there is no pollution control.

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Solution

The correct answer is a) decrease, but there may still be some pollution.

Here's why:

  1. The new technology has lowered the costs of reducing pollution. This means that it is now cheaper for firms to reduce their pollution levels.

  2. As a result, firms will be more likely to reduce their pollution levels because it is now more cost-effective to do so.

  3. However, this does not necessarily mean that all pollution will be eliminated. There may still be some level of pollution that is economically efficient. This is because there are costs associated with reducing pollution, and at some point, the cost of reducing pollution by an additional unit may exceed the benefit of doing so.

  4. Therefore, the allocatively efficient amount of pollution will decrease, but there may still be some pollution.

This problem has been solved

Similar Questions

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The high cost of a pollution reduction program that increases access to cleaner water and reduces airborne industrial waste from factories could be offset byMultiple choice question.the cost reduction associated with pollution abatement.the overall profit experienced by government.the reduction in health-care expenses due to cleaner air.the increase in health-care expenses due to cleaner air.

The economically efficient amount of pollution will be zero when which of the following is true?Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.aWhen costs of pollution are greater than the marginal costs of pollution reduction at all levels of pollution.bWhen costs of pollution are less than the marginal costs of pollution reduction at all levels of pollution.cUnder no circumstances. Some pollution is always economically efficient.dUnder all circumstances. It is never economically efficient to have consumers or producers force others to pay the costs of pollution.

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