37. The following table shows marginal costs and benefits of the optimal quantity of pollution abatement that will occur at a local factory Quantity of pollution Marginal Marginal abatement cost benefit 200 tons $300.000 $ 20.000 180 tons 180.000 30.000 160 tons 120,000 40.000 140 tons 60.000 60.000 120 tons 30.000 80,000 100 tons 15.000 160,000 (a) What is the optimal level of pollution abatement ? Why? b) If the marginal benefit of pollution abatement were to increase by $150,000 at each level because of the factory's desire to improve i its image and environment , what would the optimal level be? Why? (c) What might cause the optimal level of pollution abatement to be 120 tons ? 38. "Pollution should be completely eliminated ." Evaluate . Support your answer using MB and MC analysis 39. What perspective do economists use to evaluate the issue of the amount of pollution control ? 40. What are the limitations to government's role in the economy ? 41. (Last Word) Describe the idea behind the cap-and-trade program for improving environmental quality. Explain how supply and demand determine the price for pollution rights in this case . 42. (Last Word) Describe how a market for externality rights or cap-and-trade system would work in terms of supply and demand 43. (Last Word) Assume the atmosphere of an urban area is able to reabsorb 4000 tons of pollutants per year. The schedule below shows the price polluters would be willing to pay for the right to dispose of 1 ton of pollutants per year and the total quantity of pollutants they would wish to dispose of at each price . Price Total quantity of pollutant (per ton of rights demanded pollutant rights (tons 0 8000 100 7000 2000 6000 3000 5000 4000 4000 5000 3000 6000 2000 7000 1000 (a) If there were no emission fee, how many tons of pollutants would there be and how much greater would this amount be than the capacity for reabsorption ? (b) What pollution fee should the urban authorities charge to solve the problem ? (c) What would happen in this market for pollution rights if quantity demanded increased by 1000 tons at each price