1. Suppose a city releases 16 million gallons of raw sewage into a nearby lake. The table below shows the total costs and marginal costs of cleaning up the sewage to different levels, together with the total benefits of doing so. (Benefits include environmental, recreational, health, and industrial benefits.)
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A. What is the optimal level of sewage for this city? Explain making references to economic concepts.
B. Why not just pass a law that firms can emit zero sewage? After all, the total benefits of zero-emissions exceed the total costs. Explain making references to economic concepts. Get Business Law homework help today
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