In the market for copper, we can obtain copper from two sources. The marginal cost of mining ore is MC1 = 10 + 7q1 and the marginal cost of recycling copperisMC2 =40+2q2
(a) If the total market demand for copper is 50, what amount will come from mining and what will come from recycling?
(b) If the government decides to promote recycling with a subsidy of $20 per unit of copper, how much copper will come from mining and how much from recycling?