Question: In the graph below, the solid redline represents the marginal cost of reducing particle emissions (measured in pounds) for a firm.The dashed line represents a
In the graph below, the solid redline represents the marginal cost of reducing particle emissions (measured in pounds) for a firm.The dashed line represents a newly imposed pollution charge of $1340for every pound of pollution emitted.
Suppose the firm is currently emitting more than 100pounds of particle emissions and must decide how to respond to the pollution charge. (Assume that particle emissions can only be reduced in multiples of fifteenpounds.)
By how many pounds will the firmchoose to reduce its pollution?

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