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Reducing the total pollution by 30 tons

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Luigi and Karine each have a polluting factory. The Luigi plant has a marginal cost of purification = 10T ($ 10 for the 1st ton, 10 (2) = $ 20 for the 2nd ton ...) and that of Karine = 15T ($ 15 for the 1st ton, 15 (2) = $ 30 for the 2nd ton ...).

Suppose the government plans to levy pollution emission rights "Pollution emission charges" with the aim of reducing the total pollution by 30 tons. What emission rights will have to be raised to achieve the government's goal?

Reference no: EM132414792

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