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Chapter 5: Problem 5

If the marginal cost of reducing a certain type of pollution is zero, should all of that type of pollution be eliminated? Briefly explain.

Short Answer

Expert verified
No, all of that type of pollution should not necessarily be eliminated. The decision should take into consideration other factors such as the desirable aspects of the pollution-causing activities. Just because the cost of reducing incremental pollution is zero doesn't automatically imply that all pollution should be eradicated.

Step by step solution

01

Understand Marginal Cost and Pollution

The marginal cost is the cost of producing one additional unit of a good. For pollution, this is the cost to reduce one extra unit of pollutant. In this case, the marginal cost to reduce a certain type of pollution is zero, meaning there's no cost for each extra unit of pollution reduced.
02

Consider the Effect of Pollution Elimination

Even if reduction has no cost, it doesn't automatically mean all pollution of that type should be eliminated. The decision should take into account the potential side effects of complete eradication. The benefits of pollution-producing activities should be considered alongside their pollution costs.
03

Understand the Trade-offs

There's a trade-off between pollution reduction and the continuation of pollution-producing activities. These might be necessary for social or economic activities. Therefore the question whether to totally eliminate a type of pollution doesn’t have an absolute yes or no answer. It depends on the benefits brought by the pollution-producing activities, against the benefits and potential negative impacts of completely eliminating the pollution.

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