Question: MISSING ANSWERS FOR PART C a.) Arthur's demand to reduce electric and magnetic fields (EMFs) is P = 20 - 2 Q, while Ronald's demand

MISSING ANSWERS FOR PART C

a.) Arthur's demand to reduce electric and magnetic fields (EMFs) is P = 20 - 2 Q, while Ronald's demand is P = 15 - 3 Q. If the marginal cost of reducing emissions is equal to $15 and is constant, what is the optimal amount of EMF reduction? (5)

b.) What Lindahl prices would you charge Arthur and Ronald? What might prevent you from collecting these prices? (5)

c.) How would your answers change if the marginal cost of reducing emissions was equal to $10 and is constant? (5)

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