Consider the following benefit and cost functions for the abatement level (A) necessary to achieve the maximum

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Consider the following benefit and cost functions for the abatement level (A) necessary to achieve the maximum contaminant level (MCL) for some identified drinking water pollutant. 

TSB = 45A − 0.25A2

MSB = 45 −0.5A

TSC = 24A + 0.10A2

MSC = 24 + 0.2A,

where all benefit and cost values are measured in millions of dollars and A is measured in percent.

a. Using the pre-1996 benefit-based criterion for drinking water standards, find the level of abatement that will maximize total social benefits (TSB).

b. Based on the benefit-cost criterion in the 1996 SDWA, find the maximum level of abatement that will ensure positive net benefits. 

c. What level of abatement will maximize the net social benefits?

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