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04 Question (3 points) E See page 670 Two rms operate in a manufacturing industry that generates a signicant amount of pollution. The local government

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04 Question (3 points) E See page 670 Two rms operate in a manufacturing industry that generates a signicant amount of pollution. The local government has decided to crack down and limit the total amount of pollution to 1000 units. Each rm has a different cost of cleaning up its production process. Firm 1's marginal cost of pollution abatement is c1(x1) : 6000.00 + 3.50x1 and rm 2's marginal cost of abatement is 02(x2) = 1500.00 + 7.00x2, where x1 and x2 are the amounts of pollution emitted by each rm. The two rms are constrained to produce no more than the 1000 units of pollution combined. 3rd attempt 0 See Hint Suppose that a government agency is able to estimate the pollution abatement equations and set quotas for each rm. How will it divide up the 1000 units of pollution between the two? Give all answers to two decimals. Firm 1 will be given a quota of units and rm 2 will be given a quota of units

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