Figure 5-8 Consider a Chemical Plant That Discharges Toxic Fumes Over a Discharges

Multiple Choice

Figure 5-8

Consider a chemical plant that discharges toxic fumes over a nearby community. To reduce the emissions of toxic fumes the firm can install pollution abatement devices. Figure 5-8 shows the marginal benefit and the marginal cost from reducing the toxic fumes emissions.
-Refer to Figure 5-8.Suppose the emissions reduction target is currently established at 8 million tons.Should society undertake to reduce an additional 1 million tons so that the total reduction is 9 million tons?

A) No, because there is a net cost represented by the area B + C.
B) Yes, because the marginal benefit exceeds the marginal cost at 8 million tons.
C) Yes, because toxic fumes are dangerous and must be eliminated at any cost.
D) No, because the firms will pass the additional cost on to consumers.