ThefollowingtablegiveshypotheticalannualtotalcostsandtotalbenefitsofmaintainingalternativepopulationsofAsianelephants. In Excel Please

Calculatethemarginalcostsandbenefits,anddrawmarginalbenefitandcostschedules.

Giventhedata,whatisthesociallyoptimalworldpopulationofAsianelephants?

Supposethattwoeventsoccursimultaneously.Technologicaldevelopmentallowsmachinestodomoreefficientlymuchoftheworkthatelephantsoncedid,whichreducesby$10millionthemarginalbenefitofmaintainingtheelephantpopulationforeach7,500incrementintheelephantpopulation.Inaddition,newtechniquesforbreeding,feeding,andprotectingelephantsreducethemarginalcostby$40millionforeach7,500incrementintheelephantpopulation.WhatisthenewsociallyoptimalpopulationofAsianelephants?

PopulationofAsianElephants	TotalCost($millions)	TotalBenefit($millions)
0	0	0
7,500	20	100
15,000	45	185
22,500	90	260
30,000	155	325
37,500	235	375
45,000	330	410