If the marginal benefit of pollution increases, what happens to the equilibrium quantity of pollution

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04-03-2022
Business

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If the marginal benefit of pollution increases, what happens to the equilibrium quantity of pollution

Sagot :

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ewomazinoade ewomazinoade · Answer 1 · 2022-03-17T05:47:10-04:00

If the marginal benefit of pollution increases, the equilibrium quantity of pollution increases.

What is negative externality?

A good has a negative externality when the marginal cost of production is greater than the marginal benefit to third parties not involved in production or consumption. This makes goods with negative externality to be overproduced.

When the marginal benefit of pollution increases, the equilibrium quantity increases.

To learn more about externalities, please check: https://brainly.com/question/26266710

Sagot :

What is negative externality?

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