Because Sam and Richard are each affected by the same pollution, we add their marginal cost curves vertically. For example, if the total quantity of the emissions is 34 pounds per day, the marginal cost of the 34th pound to Richard is $4, it is $9 to Sam, for a total marginal cost of the 34th unit of $13. In Panel , we put DT and MCT together to find the efficient solution. The two curves intersect at a level of emissions of 34 pounds per day, which occurs at a price of $13 per pound. Pollution implies scarcity. If an activity emits harmful by-products into the environment,
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