What is the optimal level of pollution reduction- what tax


The marginal damage averted from pollution cleanup is MD = 200 - 5Q.

The marginal cost associated with pollution cleanup is MC 5= 10 1 Q.

a. What is the optimal level of pollution reduction?

b. Show that this level of pollution reduction could be accomplished through taxation. What tax per unit would generate the optimal amount of pollution reduction?

Request for Solution File

Ask an Expert for Answer!!
Business Law and Ethics: What is the optimal level of pollution reduction- what tax
Reference No:- TGS01567078

Expected delivery within 24 Hours