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Please help with the following problem.

The cost of pollution (in billions of dollars) originating in the paper industry is

C_P = 2P + P^2

where P is the quantity of pollutants emitted (in thousands of tons). The cost of pollution control (in billions of dollars) for this industry is

C_C = 5 - 3P

a. What is the optimal level of pollution?
b. At this level of pollution, what is the marginal cost of pollution?
c. At this level of pollution, what is the marginal cost of pollution control?

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Solution Summary

This solution answers questions involving managerial economics problems based on the cost of pollution control for an industry. It helps determine the optimal level of pollution, the marginal cost of pollution and the marginal cost of pollution control. Explanations are given.

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Questions: What is the optimal level of pollution? At this level of pollution, what is the marginal cost of pollution? At this level of pollution, what is the marginal cost of pollution control?

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