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

Question

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

Quizplus · Accepted Answer

To find the point at which there is no further social benefit from reducing pollution, we set MB equal to zero and solve for U:

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

Therefore, after 9 units of pollution abatement, there is no further social benefit from reducing pollution.

To confirm that this is the correct answer, we can check the marginal cost at U = 9:

MC = 2(9) + 2 = 20

At U = 9, the marginal cost of reducing pollution is greater than the marginal benefit, so it would not be worth it to reduce pollution any further. Therefore, the answer is D.

The Marginal Benefit of Reducing Pollution and the Marginal Cost