The marginal abatement costs (MAC) for Stark and York Paper are MACs = 0.2es and MACY = 0.25eY, where es and eY represent the amount of emissions cut by each company. What is the lowest-cost approach to reducing 90 units of emission?
Stark and York Paper each reduce emissions by 45 units.
Stark reduces pollution by 60 units and York Paper reduces emissions by 30 units.
Stark reduces pollution by 50 units and York Paper reduces emissions by 40 units.
Stark reduces pollution by 30 units and York Paper reduces emissions by 60 units.