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ANEK [815]
3 years ago
11

The Filthy Chemical Company dumps 100 tons of pollutants every year in the Pristine Lake. The Trout Fishing Co., the only other

user of the lake, estimates that if Q tons of pollution were cleaned up every year its profits would rise according to the relation ∆???? = 10 ???? − 1 10 ???? 2 Filthy estimates it can clean the pollutants at a constant average cost of $2 per ton. (a) In the interest of efficiency, how much pollution should be cleaned up every year? (b) Suppose Filthy bought the Trout Co. How much would it clean up? What if Trout bought Filthy? (c) State the Coase Theorem. Does your answer to (b) confirm or deny the theorem? Explain briefly.

Business
1 answer:
Maurinko [17]3 years ago
4 0

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

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Answer

The answer and procedures of the exercise are attached in the following archives.

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You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

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