How much effluent will the mill now discharge

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Reference no: EM131103625

The figure below illustrates the marginal cost of pollution control for a small pulp mill. Local authorities have just imposed an effluent charge of $1.00 per gallon of effluent in an effort to reduce water pollution.

a. How much effluent will the mill now discharge, if it discharged 22,000 gallons daily prior to the effluent charge?

b. If local authorities raise the charge to $1.20 per gallon. How much effluent will the mill now discharge?

Reference no: EM131103625

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