The Following Table Shows Marginal Costs and Benefits of the Optimal

question 29

Essay

The following table shows marginal costs and benefits of the optimal quantity of pollution abatement that will occur at a local factory. (a) What is the optimal level of pollution abatement? Why?
(b) If the marginal benefit of pollution abatement were to increase by $30,000 at each level because of the factory's desire to improve its image and environment, what would the optimal level be? Why?
(c) What might cause the optimal level of pollution abatement to be 400 tonnes?

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Definitions:

Arginine

An essential amino acid that plays an important role in protein synthesis and the cycle of nitrogen in the body.

Enzyme

Bio-originated molecules that markedly expedite the rate of virtually every chemical activity taking place within cellular structures.

Neurospora

A genus of ascomycete fungi, often used as a model organism in genetics and molecular biology.

Diploid

The condition of having two sets of chromosomes per nucleus. Compare with haploid and polyploid.