A pulp mill, A, competes in a perfectly competitive international market. A produces 8 tons of pulp hourly. The market price = $80 a ton. For every ton of production, A produces 0.2 tons of pollution. The private cost of production is $x2/2 and the private marginal cost of production = $x (where x is pulp output of A measured in tons). The downstream village of Watertown (WT) spends $160 per ton o