Three firms have marginal costs of pollution abatement as

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1. Disney land discovers that they have two groups of customers with two different demand curves. Locals have demand P= 20-0.1Q and foreigners have demand P=100-0.2Q. What is the profit maximizing set of prices? (The marginal cost of visitors is >Please help me answer don't know where to start!

2. Three firms have marginal costs of pollution abatement as described below. Without regulation, each firm would pollute 3 units. Under command and control regulation each firm gets to pollute 1 unit. But the new Santorum administration decides that these permits should be tradable among these 3 firms. Explain whether each firm buys or sells permits, and show by how much each firm's costs go up or down. What is the total effect of allowing trading across all firms on the cost of pollution abatement? Amount of pollution Firm numbers 0 1 2 1 58 60 63 2 60 21 58 3 200 78 16

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Three firms have marginal costs of pollution abatement as : 1. disney land discovers that they have two groups of customers with two different demand curves. locals have demand p
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