The folks of Brownsville have been complaining that the air from the town's Chile factories is too spicy. The folks have voted to reduce pollution from 10 to 4. Each company will be given 2 pollutions credits that they can use or sell to the other company (they have to reduce pollution by 3 units each if they don't buy/sell credits).

Rooster Inc. Chili Corp. Reduced units Total Reduced units Total of spicy air Cost Marginal Cost of spicy air Cost Marginal Cost 1 50 50 1 90 90 2 120 70 2 200 110 3 210 90 3 330 130 4 320 110 4 480 150 5 459 130 5 650 170