The Acme Waste Company of New York City dumps waste into the Atlantic.
It has a supply function of Q^s=5000p where p is the price per ton of waste disposed and Q is the quantity in tons. The demand for waste disposal for New York City residents is Q^= 400,000 - 1000p.
Unfortunately, the disposal system is not perfect: some of the waste washes up on the beaches of New Jersey.
The cost of cleaning up the beach is valued at $20 per ton of waste disposed. Use graphs and algebra to answer the following.
a) What is the market price of disposal? At this price how many tons will be disposed? b) What is the efficient amount of waste disposed? What price should be charged for disposal?