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The Marginal Cost of Pollution Is MC = 2Q, While

Question 4

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The marginal cost of pollution is MC = 2Q, while the marginal abatement cost is MAC = 12 - Q. Government regulators incorrectly estimate the marginal abatement cost at MACE = 9 - Q. The level of pollution, measured in tons of glop, is Q. The marginal cost of pollution is MC = 2Q, while the marginal abatement cost is MAC = 12 - Q. Government regulators incorrectly estimate the marginal abatement cost at MAC<sub>E</sub> = 9 - Q. The level of pollution, measured in tons of glop, is Q.

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a. Set MAC = MC:
12 - Q = 2Q
Q = 4
b. Se...

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