The cost of controlling emissions at a firm goes up rapidly as the amount of emissions...

The cost of controlling emissions at a firm goes up rapidly as the amount of emissions reduced goes up. Here is a possible model: C(x, y) = 1,000 + 200x2 + 200y2 where x is the reduction in sulfur emissions, y is the reduction in lead emissions (in pounds of pollutant per day), and C is the daily cost to the firm (in dollars) of this reduction. Government clean-air subsidies amount to $100 per pound of sulfur and $200 per pound of lead removed. How many pounds of pollutant should the firm remove each day to minimize net cost (cost minus subsidy)?

Expert Solution

Colby Messinger answered 2 years ago

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The cost of controlling emissions at a firm goes up rapidly as the amount of emissions...

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