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A firm that produces electricity using coal that emits pollution. For every part per million, P, the firm is fined $10,000. However, it can invest
A firm that produces electricity using coal that emits pollution. For every part per million, P, the firm is fined $10,000. However, it can invest in scrubbers, S, that cost $25,000 each and reduce pollution according to the formula P=10/S
1.Suppose the fine doubles. Find the optimal number of scrubbers to invest in, what the amount of pollution will be, and what the total cost to the firm will be. (Round to the nearest whole scrubber) Explain what is happening.
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