Suppose an electric utility company expects to earn $1 million in profit each year.In the process of producing electricity,pollutants emitted by the firm's smokestacks impose costs of $50 per year on each of 10,000 neighboring residents.A smokestack scrubber that would eliminate 80% of the damage can be purchased for $200,000,but needs to be replaced each year.
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The Answer of Suppose an electric utility company expects to earn $1 million in profit each year.In the process of producing electricity,pollutants emitted by the firm's smokestacks impose costs of $50 per year on each of 10,000 neighboring residents.A smokestack scrubber that would eliminate 80% of the damage can be purchased for $200,000,but needs to be replaced each year.
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Suppose an Electric Utility Company Expects to Earn $1 Million