The marginal benefit of reducing pollution and the marginal cost of reducing pollution are given by the following equations: MB = - 2U2 + 18,and MC = 2U2 + 2,where U is the number of units of pollution abatement.What is the level of pollution abatement after which there is no benefit whatsoever in reducing pollution?

Question

Quizplus · Accepted Answer

To find the level of pollution abatement after which there is no benefit, we need to set MB equal to zero and solve for U:

0 = -2U^2 + 18 
2U^2 = 18 
U^2 = 9 
U = 3

Now we need to compare the marginal cost at this level of pollution abatement to see if it is greater or less than zero:

MC = 2U^2 + 2 
MC = 2(3)^2 + 2 
MC = 20

Since MC is greater than zero, it is not worth continuing to reduce pollution beyond U = 3. Therefore, the best choice is D (3).

The Marginal Benefit of Reducing Pollution and the Marginal Cost