Suppose that the marginal cost of cleanup is constant at 12, Financial Econometrics

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Suppose that the marginal cost of cleanup is constant at 12

Warrenia has two regions.

In Oliviland, the marginal benefit associated with pollution cleanup is MB = 300 - 10Q, while in Linneland, the marginal benefit associated with pollution cleanup is MB = 200 - 4Q.

Suppose that the marginal cost of cleanup is constant at $12 per unit. What is the optimal level of pollution cleanup in each of the two regions?

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Financial Econometrics: Suppose that the marginal cost of cleanup is constant at 12

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Financial Econometrics: Suppose that the marginal cost of cleanup is constant at 12

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