Question

If more is better, how can you explain that more pollution doesn't violate this principle?

Answer 1

Pollution is a external cost. And more isn't better, as when the totoal benefits fall short of the total cost induced , its a loss to the society. This is why government's ofetn put high taxes for consumption which can be polluting, eg the car industry. Cars which emit a lot of pollution are taxed, as governments know, if they dont tax it, the number of car the economy would be using without tax, will cause more harm than benefit . This Tax reduces the quantity demanded.

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