Quantity of Clean Air (%) Marginal Cost ($) Marginal Benefit ($)
0 50,000 600,000
20 150,000 360,000
40
200,000 200,000
60 300,000 150,000
80 400,000 120,000
100 Infinite 0
a)What is the optimal degree of air cleanliness?
b)What is the optimal degree of air pollution?
c) Suppose that a state provides subsidies for a company to build plants that contribute to air pollution. Cleaning up this pollution causes the marginal cost of air cleanliness to rise by $210,000 at each degree of air cleanliness. What is the optimal degree of air cleanliness after this change?