Turkey has two regions. In West, the marginal benefit associated with pollution clean-up is MB=300–10Q, while in East, the marginal benefit associated with pollution clean-up is MB=200–4Q. Suppose that the marginal cost of clean-up is constant at $12 per unit. What is the optimal level of pollution clean-up in each of the two regions?

Turkey has two regions. In West, the marginal benefit associated with pollution clean-up is MB=300–10Q, while in East, the marginal benefit associated with pollution clean-up is MB=200–4Q. Suppose that the marginal cost of clean-up is constant at $12 per unit. What is the optimal level of pollution clean-up in each of the two regions?

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter3: Economic Decision Makers

Section: Chapter Questions

Problem 3.12P

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