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According to the Onondaga reservation located south of Syracuse, Lake Onondaga is heavily polluted with Methyl Mercury due to the fact that Allied Chemical discharged around 165,000 pounds of waste. Since then efforts have been made to clean up the lake establishing a water treatment plant. Environmental economist determine that the Marginal Social Cost is estimated by the following function.
MSC = 14 + 1.5A
Where A is the methyl mercury abated in thousand pounds
In the decision making process the authorities must decide the cost of abating the hazardous material. In 2016 it is estimated the amount abated will be A=25. The likely projection for 2017 will be A= 32
Given this information determine the Incremental Cost of the reservation from 2016 to 2017 (Math Required, Show your work)
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