Question

As the extent of environmental protection expands, would you expect the marginal benefits of environmental protection to rise or fall? Why or why not?

Short answer

The value of marginal benefits will rise.

Step-by-step solution

Introduction

Environmental protection: Environmental protection is the process of safeguarding and conserving the natural environment.

Marginal cost: Additional costs incurred with the cost of producing an additional unit are referred to as marginal costs.

Marginal benefit: A marginal advantage is a benefit derived from the sale of one more unit of a product.

Explanation

Every country attempts to limit emissions from time to time by enacting environmental regulations. These regulations require businesses to contribute to the reduction of emissions in exchange for tax breaks and other government advantages. This has a favourable impact on society since people are breathing cleaner air, and they are consumers of things created by businesses, thus earnings will grow as well. Marginal benefits will rise, and marginal costs will fall.