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Suppose a Paper Mill Earns $1,000,000 in Profits When It

Question 34

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Suppose a paper mill earns $1,000,000 in profits when it pollutes a river,and it can abate pollution at a cost of $A.The effects of the pollution are confined to a single farmer who earns $400,000 if the water he uses from the river is clean and $300,000 if it's polluted.Which of the following expressions gives the combined profit of both firms with abatement?


A) $(1,300,000 - A)
B) $(1,400,000 - A)
C) $(700,000 + A)
D) $(1,700,000 - A)

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