(5) National Lead CO. (NLC), a monopoly public enterprise, produces lead at a cost of $5...

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(5) National Lead CO. (NLC), a monopoly public enterprise, produces lead at a cost of $5 per unit. Demand for lead is give by Q=25000-1000P (a) Write down expressions for the Consumer's Surplus and the firm's profit in terms of Q alone. (b) How much lead should NLC produce, and what price should it charge to maximize welfare? (c) Suppose environmentalists discover that for each unit of lead it produces, MLC also produces one unit of a toxic waste (W) that causes a total damage given by D=W²/8000 Where W is the amount of waste discharged. What would your answer to part (b) given this additional information? (d) Suppose NLC now discovers that it could eliminate waste at a cost of C=A²/2000 Where A is the amount of waste abated. Answer again the question in part (b). (5) National Lead CO. (NLC), a monopoly public enterprise, produces lead at a cost of $5 per unit. Demand for lead is give by Q=25000-1000P (a) Write down expressions for the Consumer's Surplus and the firm's profit in terms of Q alone. (b) How much lead should NLC produce, and what price should it charge to maximize welfare? (c) Suppose environmentalists discover that for each unit of lead it produces, MLC also produces one unit of a toxic waste (W) that causes a total damage given by D=W²/8000 Where W is the amount of waste discharged. What would your answer to part (b) given this additional information? (d) Suppose NLC now discovers that it could eliminate waste at a cost of C=A²/2000 Where A is the amount of waste abated. Answer again the question in part (b).