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Question
| Quantity of Clean Air (%) | Marginal Cost ($) | Marginal Benefit ($) |
| 0 | 10,000 | 100,000 |
| 25 | 25,000 | 50,000 |
| 50 | 37,500 | 37,500 |
| 75 | 75,000 | 25,000 |
| 100 | Infinite | 0 |
The above table shows marginal costs and marginal benefits of clean air in a particular industrial area. In the table, when the quantity of clean air is at 75 percent,
A) the quantity of polluted air is 75 percent.
B) the marginal benefit of clean air exceeds the marginal cost.
C) the marginal benefit of clean air is less than the marginal cost.
D) the quantity of clean air is optimal.
Answer
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