How much pollution reduction must coal mining undertake, Microeconomics

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How much pollution reduction must coal mining undertake

Appalachian Coal Mining believes that it can increase labor productivity and, therefore, net revenue by reducing air pollution in its mines. It estimates that the marginal cost function for reducing pollution by installing additional capital equipment is

MC = 40P

where P represents a reduction of one unit of pollution in the mines. It also feels that for

every unit of pollution reduction the marginal increase in revenue (MR) is

MR = 1,000 - 10P

How much pollution reduction should Appalachian Coal Mining undertake?

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Microeconomics: How much pollution reduction must coal mining undertake

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Microeconomics: How much pollution reduction must coal mining undertake

Reference No:- TGS0512202

Have a Question? (oR Write a Review)

Recent Questions Asked Microeconomics

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Ask an Expert for Answer!!

Microeconomics: How much pollution reduction must coal mining undertake

Reference No:- TGS0512202

Recent Questions Asked Microeconomics

Q : Non-operations business functions

Q : Propose how each organization will monitor performance

Q : Shoplift security company

Q : Identify video game console industry performance

Q : How much pollution reduction must coal mining undertake

Q : Explain how you made the decision to pursue

Q : The constraints in conducting an effective value chain

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Q : Identify how a marketing manager might realize

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