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: .
$5.50 is the right answer.
At the effluent fee of $5.50, Firms ...
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.