Question: Warrenia has two regions In Oliviland the marginal benefit associated
Warrenia has two regions. In Oliviland, the marginal benefit associated with pollution cleanup is MB = 300 – 10Q, while in Linn eland, the marginal benefit associated with pollution cleanup is MB = 200 – 4Q. Suppose that the marginal cost of cleanup is constant at $12 per unit. What is the optimal level of pollution cleanup in each of the two regions?
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