# Maximize Profits

Refer to the attached Table: Assume that these firms want to maximize profits. If the government wishes to cut discharge by 50%, it could do so by

establishing an effluent fee of: .

$3.00

$4.50

$5.50

$10.00

https://brainmass.com/economics/microeconomics/maximize-profits-322677

#### Solution Preview

$5.50 is the right answer.

At the effluent fee of $5.50, Firms ...

#### Solution Summary

The solution clearly and concisely provides an answer to the problem. A brief answer is given which helps for students who are just looking to confirm their understanding of the problem.

$2.19