Elm Industries receives profits from polluting according to the formula: (pi=10Q-Q^2)
The Damages associated with pollution from this facility are estimated to be: (D=Q^2+2Q) (Q= pollution emitted in tons) , and profits are measured in dollars knowing that MB=10-2Q , and MD=2Q+2 answer this question:
If Elm Industries could ignore the damages it caused, how much Q would it produce? How much profit would it earn at this level of production? How much would its total damages be? What would be the net benefits (i.e., difference between profits and damages)?