Question
In: Economics
Suppose there are two ways to reduce water pollution in a river. Society needs to remove...
Suppose there are two ways to reduce water pollution in a river. Society needs to remove 150 units of pollution (q). The marginal cost of the first method is 2q1. The marginal cost of the second method is 3q2. Society wants to use the most cost-effective way to reduce water pollution. How many units of pollution should be removed using the second method? (Round your answer to two decimal places.
Solutions
Expert Solution
MC1= 2q1, MC2= 3q2
q1+ q2= 150
So, at cost effective solution
MC1= MC2
2q1= 3q2
Put q1= 150-q2
So, 2(150-q2) = 3q2
300-2q2= 3q2
300= 5q2
q2*= 60
Rahul Sunny answered 2 years agoRelated Solutions
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