The following table shows the 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?

Quantity of pollution abatement Marginal cost Marginal benefit 700 tons $100,000 $ 20,000 600 tons 60,000 30,000 500 tons 40,000 40,000 400 tons 20,000 60,000 300 tons 10,000 80,000 200 tons 5,000 160,000

c. What would need to happen to the marginal cost to cause the optimal level of pollution abatement to be 400 tons?