The amount of pollution abatement is plotted horizontally, with amounts rising from Q 1 to Q 4. The vertical axis is labeled society’s M B and M C of pollution abatement. The graph shows two rising curves labeled M C 1 and M C 2 and two falling curves labeled M B 1 and M B 2. M B 2 lies above M B 1 and M C 2 lies to the right of M C 1. The falling curves start at two different points on the top left and end at two different points on the bottom right. The rising curves start at two different points on the bottom left and end at two different points on the top right. M B 1 and M C 1 intersect at Q 1. M B 2 and M C 1 intersect at Q 2. M B 1 and M C 2 intersect at Q 3. M B 2 and M C 2 intersect at Q 4.
Refer to the diagram. From society's perspective, if MB1 and MC2 are relevant,
Multiple Choice
• Q4 represents too little pollution abatement.
• Q2 represents too little pollution abatement.
• Q2 represents an optimal amount of pollution abatement.
• Q1 represents too much pollution abatement.