Suppose the MSC of cleaning Puget Sound is modeled as MSC = 10 + 1.4A, where A is the percentage of phosphorus abated and MSC is measured in millions of dollars.
a. Find the incremental costs of a policy initiative that increases the phosphorus abatement level from its baseline of 30 percent to 45 percent.
b. Graphically illustrate using the MSC function, labeling clearly where incremental costs are shown.
c. Repeat part (b) using the TSC function directly.