where q is the reduction in emissions (in pounds of pollutant per day) and C is the daily cost to the firm (in dollars) of this reduction. The government will pay subsidies in the amount of $550 per pound for each pound of the pollutant removed (q). For example, if you can remove q=3 pounds of pollutant, you will receive a subsidy of $550*3.

How many pounds of pollutant should the firm remove each day in order to minimize Net Cost (Cost minus subsidy)?

Answer rating: 100% (QA)

To minimize the net cost we need to find the amount of pollutant in pounds that minimizes the net co... View the full answer