How the pollution causes damages to two nearby communities

Reference no: EM13179468

A factory benefits from discharging effluent, q, into a lake. The marginal benefit function is given by 60-2q. The pollution causes damages to two nearby communities. The marginal damages to Community A are 1q. The marginal damages to community B are 2q.

a. What is one reason that the damages may be different across the two communities?

Reference no: EM13179468

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