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 marginal cost of reducing pollution by one unit is _ at a(n) rate.

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 marginal cost of reducing pollution by one unit is _ at a(n) rate.

Quizplus · Accepted Answer

The marginal cost of reducing pollution by one unit is increasing at an increasing rate. This is because the marginal cost of each additional unit of pollution abatement is greater than the marginal cost of the previous unit.

The Table Below Shows the Marginal Benefit and Marginal Cost