Two firms - A & B - -- are ordered by the federal government to reduce their pollution levels. Firm A's marginal cost of pollution reduction is MCA = 150 + 3QA and Firm B's marginal cost of pollution reduction is MCB = 9QB. The marginal benefit of pollution reduction is MB = 250 4QT, where QT is the total amount of reduction. If the government required Firm A and Firm B to reduce pollution by the same amount, what is ― Firm A's MC of this policy? Two firms - - A & B - are ordered by the federal government to reduce their pollution levels. Firm A's marginal cost of pollution reduction is MCA = 150 + 3QA and Firm B's marginal cost of pollution reduction is MCB = 9QB. The marginal benefit of pollution reduction is MB = 250 - 4QT, where QT is the total amount of reduction. If the government required Firm A and Firm B to reduce pollution by the same amount, what is Firm B's MC of this policy?
Two firms - A & B - -- are ordered by the federal government to reduce their pollution levels. Firm A's marginal cost of pollution reduction is MCA = 150 + 3QA and Firm B's marginal cost of pollution reduction is MCB = 9QB. The marginal benefit of pollution reduction is MB = 250 4QT, where QT is the total amount of reduction. If the government required Firm A and Firm B to reduce pollution by the same amount, what is ― Firm A's MC of this policy? Two firms - - A & B - are ordered by the federal government to reduce their pollution levels. Firm A's marginal cost of pollution reduction is MCA = 150 + 3QA and Firm B's marginal cost of pollution reduction is MCB = 9QB. The marginal benefit of pollution reduction is MB = 250 - 4QT, where QT is the total amount of reduction. If the government required Firm A and Firm B to reduce pollution by the same amount, what is Firm B's MC of this policy?
Chapter19: Externalities And Public Goods
Section: Chapter Questions
Problem 19.9P
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Transcribed Image Text:Two firms - A & B - -- are ordered by the federal government to reduce their pollution
levels. Firm A's marginal cost of pollution reduction is MCA = 150 + 3QA and Firm B's
marginal cost of pollution reduction is MCB = 9QB. The marginal benefit of pollution
reduction is MB = 250 4QT, where QT is the total amount of reduction. If the
government required Firm A and Firm B to reduce pollution by the same amount, what is
―
Firm A's MC of this policy?
Two firms - - A & B - are ordered by the federal government to reduce their pollution
levels. Firm A's marginal cost of pollution reduction is MCA = 150 + 3QA and Firm B's
marginal cost of pollution reduction is MCB = 9QB. The marginal benefit of pollution
reduction is MB = 250 - 4QT, where QT is the total amount of reduction. If the
government required Firm A and Firm B to reduce pollution by the same amount, what is
Firm B's MC of this policy?
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