Question

Suppose that the additional cost of reducing pollution from automobiles is $1.50 per mile driven and...

Suppose that the additional cost of reducing pollution from automobiles is $1.50 per mile driven and that the harmful health effects of allowing that additional pollution to continue is $3.25 per mile driven, would it be efficient to allow the pollution to continue. Please explain your answer.

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Answer #1

ANSWER:

additional Cost of reducing pollution from automobiles = $1.5 per mile

harmful effects of allowing additional pollution to continue = $3.25 per mile

since the harmful effects of allowing pollution to continue is more then the additional cost of reducing pollution , therefore it would not be efficient to allow the pollution to continue that is $3.25 > $1.5

it would be better to stop the pollution as it would benefit us by ($3.25 - $1.5) that is $1.75 per mile driven.

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