Suppose there are two chemicals manufacturing firms,A and B,in the city of Maltova which release 10 units and 8 units of toxic wastes every year in the absence of any restriction.The government of Maltova then imposes a tax of $5,000 per million ton of toxic waste on the factories.Explain with the help of a suitable figure that although the same tax is imposed on both the factories,and the government is unaware of each firm's marginal costs,the government is able to reduce pollution by 11 units with minimum cost.

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The Answer of Suppose there are two chemicals manufacturing firms,A and B,in the city of Maltova which release 10 units and 8 units of toxic wastes every year in the absence of any restriction.The government of Maltova then imposes a tax of $5,000 per million ton of toxic waste on the factories.Explain with the help of a suitable figure that although the same tax is imposed on both the factories,and the government is unaware of each firm's marginal costs,the government is able to reduce pollution by 11 units with minimum cost.

Suppose There Are Two Chemicals Manufacturing Firms,A and B,in the City