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Business, 31.05.2020 00:00 madvitch6111
A plant produces aluminum, facing costs of C(A) = \frac{A^2}{10}, where A is the number of aluminum units produced, and selling them on the competitive market for a price \$ 30. A farmer grows beets next to the aluminum factory, facing costs of C(B) = 5B + \frac{B^2}{100} + \frac{A^2}{20}, where B is the number of beets produced, and selling them for \$ 15 on the competitive market. Because aluminum pollution is harmful to agricultural production, the state government imposes a tax on aluminum production. What is the socially optimal tax on aluminum?
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A plant produces aluminum, facing costs of C(A) = \frac{A^2}{10}, where A is the number of aluminum...
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