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[answered] a. What is the marginal cost to the refinery of cleaning up


a. What is the marginal cost to the refinery of cleaning up from 5 to 4? For the mill of cleaning up from 5 to 4? If both the refinery and the mill are at 5, then what is the bene?t to the fishers of the refinery cleaning up to 4? b. Suppose that the Ministry puts in place a pollution taX of $3 per ton of gunk. How much pollution will the mill generate? The re?nery? 0. Suppose instead that the Ministry decides on a cap-and-trade system, limiting total pollution to seven units. And to compensate fishers for damages, the Ministry gives the
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