Examine the following marginal costs and marginal benefits associated with water cleanliness in a given locale:

a. What is the optimal degree of water cleanliness?

b. What is the optimal degree of water pollution?

c. Suppose that a company creates a food additive that offsets most of the harmful effects of drinking polluted water. As a result, the marginal benefit of water cleanliness declines by $\$40,000$at each degree of water cleanliness at or less than 80 percent. What is the optimal degree of water cleanliness after this change?

Like same rings true in break - even point: unless they increase output, whose percentage figure is anticipated to boost.. At summary, a premium hikes better than the normal ratio, or the two have one real association.

Potential Earnings are now the added features a firm gets in boosting the quantities of both a single sector. Minority Revenue would be another label for this in the business field.

(a) Understanding because overall product equaled marginal revenue however at threshold, a best so extent of cleansing of aquifers improves. $60\%$. It's also good to clean groundwater toward the degree when objective is to minimize marginal costs. Their margin of return are included in the table underneath.

These statistic shows that information brand provides average income $60\%$, once amount all collecting duct becomes. As a conclusion, $60$percent safe water is just the appropriate volume.

(b) That maximal amount of moisture destruction becomes$40\%$, and thus the highest limit of water sources was indeed$60\%$. A maximum pollutants amount is computed far below maximum cleanness degree.

Its appropriate dosage on water quality generally considered than that where the unit benefit is far less than the producer surplus.

(c) If a potential profit reduces by $\$40,000$, an optimum depth of water quality is $40\%$. Freshwater rusting grows far above boundary stratum until,$40\%$, with maybe a modest bump which is around the concentration . $\$90,000$around a certain level of intensity. Slight decrease as in limited benefit by $\$40,000$lowers a maximum quantity for contamination of water.

Whenever optimum profit exceeds break - even point, an optimum amount of waterborne diseases be established. A optimum amount for contamination being $40\%$is if net value is $\$50,000(\$90,000-\$40,000)$. However at stage, optimal value matches break - even point.