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?

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Quantity of Clean Water (%) Marginal Cost (S) Marginal Benefit (S) 0 20 40 60 80 100 3,000 15,000 50,000 85,000 100,000 Infinite 200,000 120,000 90,000 85,000 40,000 0