Question
If the marginal cost in dollars of a pig farm eliminating the odor in a town is MC = 3 + 2Q and the marginal
If the marginal cost in dollars of a pig farm eliminating the odor in a town is MC = 3 + 2Q and the marginal cost of the local sewage plant to reduce its odor is MC = 3Q...
Part A: How much pollution should each operation eliminate if a tax of $15 per unit (Q) of pollution is assessed? (Please show your equation, calculation, and final answer)
Part B: Why will the enterprises stop polluting at those levels without strict coercive regulation? (Limit your answer to the second questions within 3 lines. Hint: you need to say something about the cost of clean up versus paying the tax)
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