A steel factory has the right to discharge waste into a, Financial Management

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A steel factory has the right to discharge waste into a

A steel factory has the right to discharge waste into a river. The waste reduces the number of fish, causing damage for fisheries. Let Q denote the quantity of waste dumped. The marginal damage, denoted MD, is given by the equation MD = 2 + 5Q. The marginal benefit (MB) of dumping waste is given by the equation MB = 34 - 3Q.

(a) Calculate the efficient quantity of waste.

(b) What is the efficient fee, in dollars per unit of waste, which would cause the firm to dump only an efficient quantity of waste?

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