What is the optimal level of pollution abatement

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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.

What is the optimal level of pollution? What is the optimal level of pollution abatement?

Reference no: EM13179473

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