Question

What economic method is often used to guide policy makers in making pollution regulations?

A) determining point of diminishing returns
B) supply-demand analysis
C) cost-benefit analysis

Answer 1

Option A, determining point of diminishing returns

Step-by-step explanation:

According to the law of diminishing returns, when in any business the profit increases marginally while the cost of input increases at a fast rate then a business is said as "not an effective business"

In case of regulations regarding pollution, it is very essential for the economist to determine whether the cost incurred in order to take measures to reduce pollution in any business is much higher than the profit gained, then such business are not profitable and hence specific measures should be taken to curb these issue through policy regulation.

Hence, option A is correct.

Answer 2

Hello,

Here is your answer:

The proper answer to this question is option A "determining point of diminishing returns"! That because the government uses that to get taxes back!

Your answer is A!

If you need any ore help feel free to ask me!

Hope this helps!