Two plants are emitting a uniformly mixed pollutant called gunk into the beautiful sky over Tourist Town. The city government decides it can tolerate the total emission of no more than 100 kg of gunk per day. At a level of 25 the plant G has marginal reduction costs of 100 - 4x and is currently polluting while plant K has marginal reduction costs of 150 - y and currently pollutes at a level of 150.
Q: Calculate the cost-effective pollution level for each plant if total pollution must equal 100? Assume the city government knows marginal reduction costs at the two plants. In this case, could the city obtain cost-effective pollution reduction using a CAC approach?