Question

Marginal social benefits of pollution can be thought of as __________.

the marginal benefit of increased taxation

the avoidance of costs of pollution reduction or abatement

the marginal cost of reducing pollution

the additional utility brought on by increased production

Answer 1

Marginal social benefits of pollution can be thought of as **the additional utility brought on by increased production**.

This perspective recognizes that some level of pollution may be accepted because it is associated with increased economic activity and production, which provides benefits to society.