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The table below shows the marginal benefit and marginal cost of pollution abatement for an ...

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The table below shows the marginal benefit and marginal cost of pollution abatement for an ...

The table below shows the marginal benefit and marginal cost of pollution abatement for an economy.

Units of Pollution Abatement	MB ($)	MC ($)
1	120	5
2	115	15
3	105	30
4	90	50
5	70	70
6	45	95
7	15	125
8	0	155

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 ________.

▸ decrease; $110

▸ decrease; $160

▸ increase; $110

▸ increase; $15

▸ decrease; $125

Textbook

Microeconomics

Edition: 17^th

Author: Ragan

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