Explain pollution reduction should appalachian coal mining

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Q. Application Coal mining believes that it can increase labour productivity and, therefore, net revenue by reducing air pollution in its mines. It approximates that marginal cost function for reducing pollution by installing additional capital equipment is MC=40P where P represents a reduction of one unit of pollution in mines. It also feels that for every unit of pollution reduction marginal increase in revenue (MR) is MR=1,000-10P Explain how much pollution reduction should Appalachian Coal Mining Undertake?

Reference no: EM1370933

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