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The Following Table Shows Marginal Costs and Benefits of the Optimal

Question 32

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The following table shows marginal costs and benefits of the optimal quantity of pollution abatement that will occur at a local factory. The following table shows marginal costs and benefits of the optimal quantity of pollution abatement that will occur at a local factory. (a) What is the optimal level of pollution abatement? Why? (b) If the marginal benefit of pollution abatement were to increase by $150,000 at each level because of the factory's desire to improve its image and environment, what would the optimal level be? Why? (c) What might cause the optimal level of pollution abatement to be 120 tonnes? (a) What is the optimal level of pollution abatement? Why?
(b) If the marginal benefit of pollution abatement were to increase by $150,000 at each level because of the factory's desire to improve its image and environment, what would the optimal level be? Why?
(c) What might cause the optimal level of pollution abatement to be 120 tonnes?

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(a) 140 tonnes because the marginal cost...

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