firm X has a total pollution abatement cost of
class="katex">2.5Q2 (which makes its marginal cost MC = 5Q), where Q is the amount of abatement taking place. mean while, firm Y has a total abatement cost of 1.5Q2 which means its marginal abatement cost is MC = 3Q.
Suppose each of the two firms are required to do 40 units of abatement (Q = 40). what is each firm's total abatement cost?
is it just simply firm X has total abatement cost of 2.5(40)2 which equals 4000 and firm Y has total abatement cost of 1.5(40)2 which equals 2400?