Question
Consider the diagram on the right for the market for pollution cleanup.1.) Using the line drawing tool, draw the marginal benefit of cleaning up pollutants.
Consider the diagram on the right for the market for pollution cleanup.1.) Using the line drawing tool, draw the marginal benefit of cleaning up pollutants. Label your line 'MB'.2.) Using the line drawing tool, draw the marginal cost of cleaning up pollutants. Label your line 'MC'.3.) Using the point drawing tool, show the optimal amount of pollution cleanup. Label your point 'Optimal'.Carefully follow the instructions above and only draw the required objects.
Part 2The optimal amount of pollution cleanup is
A.
indeterminate. It depends on the amount of funds available.
B.
not zero, because at this level the MB would far exceed the MC of cleanup.
C.
zero, because pollution is a health hazard and it should be eliminated.
D.
not 100%, because at this level the MB would far exceed the MC of cleanup.
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