The table below shows the marginal benefit and marginal cost of pollution abatement for an economy. $$\begin{array} { | c | c | c | }
\hline \begin{array} { c }
\text { Units of } \
\text { Pollution } \
\text { Abatement }
\end{array} & \mathrm { MB } & \mathrm { MC } \
\hline 1 & 120 & 5 \
\hline 2 & 115 & 15 \
\hline 3 & 105 & 30 \
\hline 4 & 90 & 50 \
\hline 5 & 70 & 70 \
\hline 6 & 45 & 95 \
\hline 7 & 15 & 125 \
\hline 8 & 0 & 155 \
\hline
\end{array}$$ TABLE 17- 1
-Refer to Table 17- 1.Suppose a public authority has the mandate to maximize social welfare by choosing the appropriate amount of pollution abatement.Compared to the optimal level of abatement,pollution abatement of 7 units would _ total social welfare by _.

Question

The table below shows the marginal benefit and marginal cost of pollution abatement for an economy. $$\begin{array} { | c | c | c | } 
\hline \begin{array} { c } 
\text { Units of } \
\text { Pollution } \
\text { Abatement }
\end{array} & \mathrm { MB } & \mathrm { MC } \
\hline 1 & 120 & 5 \
\hline 2 & 115 & 15 \
\hline 3 & 105 & 30 \
\hline 4 & 90 & 50 \
\hline 5 & 70 & 70 \
\hline 6 & 45 & 95 \
\hline 7 & 15 & 125 \
\hline 8 & 0 & 155 \
\hline
\end{array}$$ TABLE 17- 1
-Refer to Table 17- 1.Suppose a public authority has the mandate to maximize social welfare by choosing the appropriate amount of pollution abatement.Compared to the optimal level of abatement,pollution abatement of 7 units would _ total social welfare by _.

Quizplus · Accepted Answer

The marginal benefit of pollution abatement is 15 at 7 units of abatement, while the marginal cost is 125. Therefore, abating 7 units of pollution would decrease total social welfare by 110.

The Table Below Shows the Marginal Benefit and Marginal Cost