Warrenia has two regions In Oliviland the marginal benefit a

Warrenia has two regions. In Oliviland, the marginal benefit associated with pollution cleanup is MB = 300 – 10Q, while in Linneland, the marginal benefit associated with pollution cleanup is MB = 200 – 4Q. Suppose that the marginal cost of cleanup is $12 per unit. What is the optimal level of pollution clean in each of the two regions?

Solution

Warrenia has two regions. In Oliviland, the marginal benefit associated with pollution cleanup is MB = 300 – 10Q, while in Linneland, the marginal benefit assoc

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