Total costs to city of not charging residents for garbage

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Reference no: EM13837861

The local government does not directly charge their residents for collecting garbage. However, the city faces increasing marginal costs of MC=1+0.7Q per ton. Residents' market benefit for garbage is MB=250-1.4Q per ton. What are the total costs to the city of not charging residents for garbage?

(Hint: solve for the quantity consumed when P=0, then the MC at that quantity)

Reference no: EM13837861

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