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

Question

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

Quizplus · Accepted Answer

The optimal amount of pollution abatement occurs where marginal benefit equals marginal cost, which is at 5 units. This implies a positive amount of pollution remaining.

The Table Below Shows the Marginal Benefit and Marginal Cost