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This is all the information I have been given. (80 points) Two firms are located along a river. The upstream one is a steel mill,

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This is all the information I have been given.

(80 points) Two firms are located along a river. The upstream one is a steel mill, and the downstream one operates a hotel. The steel mill discharges its wastewater into the river, while the hotel uses its waterfront location to attract customers. Suppose the marginal pollution control cost of the steel mill is MCC = 10 - where Q is the level of pollution. The marginal pollution damage to the hotel is MPD = S-2+Q, Q2 2 10. Q

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