# 4: The PPF, Marginal Analysis, and the Role of Government 1) Marginal Analysis: Referring to Figures 1.3, 4.8, and 5.1 in the textbook (Chaps 1, 4, and 5), draw and explain the Marginal Benefit (MB) - Marginal Cost (MC) model. Following Figure 4.8, use marginal analysis to analyze the proper amount of pollution clean-up efforts in Chesapeake Bay. Make a graph illustrating marginal benefits and marginal costs. Explain the analysis. Why does the intersection between the MB and MC curves illustrate the optimal level of pollution clean-up? (Please note that in this problem we are using graphs to illustrate the theory and not solving for any specific numbers.) 2) The PPF: See Chapters 1 and 8 of the