Question

suppose the figure to the right illustrates the marginal cost and marginal benefit from reducing sulfur dioxide pollution. suppose also that the united states is currently generating 11.5 million tons of pollution per year. what is the optimal level of pollution reduction? the optimal level of pollution reduction is million tons per year. (enter your response rounded to one decimal place.)

Explanation:

Step1: Understand the concept of optimal level

The optimal level of pollution reduction occurs where the marginal cost (MC) equals the marginal benefit (MB).

Step2: Locate the intersection point on the graph

Looking at the graph of marginal cost and marginal benefit curves, find the point of intersection.

Step3: Determine the corresponding reduction value

From the x - axis (reduction in sulfur - dioxide emissions), read the value at the intersection point.

Answer:

8.0