A steel factory has the right to discharge waste into a river. The waste reduces the number of fish, causing damage for fisheries. Let Q denotes the quantity of waste dumped. The marginal damage, denoted MD, is given by the equation MD = 2 + 5Q. The marginal benefit (MB)of dumping waste is given by the equation MB = 34 - 3Q.
(a)Calculate the efficient quantity of waste.
(b)What is the efficient fee, in dollars per unit of waste, which would cause the firm to dump only a efficient quantity of waste?
(c)What would be the quantity dumped if the firm did not care about the fishery?

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The Answer of A steel factory has the right to discharge waste into a river. The waste reduces the number of fish, causing damage for fisheries. Let Q denotes the quantity of waste dumped. The marginal damage, denoted MD, is given by the equation MD = 2 + 5Q. The marginal benefit (MB)of dumping waste is given by the equation MB = 34 - 3Q.
(a)Calculate the efficient quantity of waste.
(b)What is the efficient fee, in dollars per unit of waste, which would cause the firm to dump only a efficient quantity of waste?
(c)What would be the quantity dumped if the firm did not care about the fishery?

A Steel Factory Has the Right to Discharge Waste into a River