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 net marginal benefit (MB - MC)of abating the first unit of pollution (U = 1)?

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 net marginal benefit (MB - MC)of abating the first unit of pollution (U = 1)?

Quizplus · Accepted Answer

To find the net marginal benefit of abating the first unit of pollution, we need to subtract MC from MB:
MB - MC = (-2 * 1 + 18) - (2 * 1 + 2) = 16
Therefore, the net marginal benefit of abating the first unit of pollution is 16. The best choice is option B.

The Marginal Benefit of Reducing Pollution and the Marginal Cost