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1. (37 pts) Two companies share a building in Topeka. Organic Inc decomposes organic waste to generate fertilizer. The company's marginal benefits from this activity are denoted as MB=402e, where e denotes the tons of fertilizer and MB is given in dollars per ton. The decomposing organic waste generates a stench that imposes damages on the other company, Robots Inc, which programs robots. Marginal damage costs are denoted as MDC=0+2e, where MDC is given in dollars per ton. 1.4. Assume instead that Organic Inc must bribe Robots Inc in order for Robots Inc to allow the manufacturing of fertilizer within the shared building. 1.4.1. (3 pts) Identify the constant bribe per ton that induces Robots Inc to allow Organic Inc to manufacture 10 tons of fertilizer. S/ ton 1.4.2. ( 2 pts) Assume Organic Inc acts on the bribe by generating 10 tons and the bribe equals $6 per ton. Calculate the total dollar value of bribes given to Robots Inc from Organic Inc. $ 3 1.4.3. (4 pts) Using the bribe, Organic Inc makes 10 tons and changes its total benefits. Do benefits rise or fall? (circle one) By how much? \$ 1.4.4. (4 pts) By responding to the bribe, Robots Inc allows Organic Inc to make 10 tons, which changes Robots Inc's total damage costs. Do damage costs rise or fall? (Circle one) By how much? \$

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