Question: A firm is deciding how much effort to devote toward pollition reduction. Say the marginal cost of pollution reduction ia given by the equation MC0=50+3q
A firm is deciding how much effort to devote toward pollition reduction. Say the marginal cost of pollution reduction ia given by the equation MC0=50+3q If a rebeesents the ouantity of emitsions reduced (in, say, pounds), then by how much is the firm weling to decrease emissions when otherwise faced with a 5200 pollution charge? pounds. What about when the firm is faced with a $230 polution charge? pounds. Keep the charge at $230, but say that an improvement in emission reduction technology shifts the marginal cost curve to MC1=30+2q. The fim is now willing to reduce emissions by pounds
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