• anonymous
What is the marginal benefit and marginal cost of pollution?
Economics - Financial Markets
  • schrodinger
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  • anonymous
If anyone knew, it would make things a lot easier! In all honesty, that is too broad a question, and really is one that cannot be answered. It would depend on the population of analysis, the time frame, and many more concerns. Generally, pollution is considered a negative externality, imposing costs on society. It's represented by an inward shift of the marginal cost curve (which makes the good cost more and the firms produce less than at the previous equilibrium, which ignored the externality.

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