A Pulp and Paper mill in Port Alberni releases pollution into nearby wetlands, and the associated health and ecological damages are not considered in the private market because the mill owns the...

Extracted text: A Pulp and Paper mill in Port Alberni releases pollution into nearby wetlands, and the associated health and ecological damages are not considered in the private market because the mill owns the rights to the wetlands. The marginal benefits and are given by the following functions: Marginal Private Benefit = 800 - 0.5Q Marginal Private Cost = 20+0.3Q Marginal External Benefit = 0 Marginal External Cost = 0.4Q A private citizens group is negotiating with the Port Alberni Paper mill to produce less output. For the 800th unit of output, determine the range within which a payment would be acceptable to both parties