PP Presentation
- As one begins the cleanup process, marginal net benefits are positive, meaning that each 10% increment of cleanup initially adds marginal benefits that exceed marginal cost.
- Positive values for net marginal benefit contribute to a larger value for total net benefits.
- When marginal net benefits of further cleanup become negative, total net benefits decline with further cleanup.
- This happens because the marginal costs of cleanup are rising, while the marginal benefits are falling.