Suppose that there are two firms creating 400 units of pollution. Suppose that the government wants to reduce pollution by 70 percent, so it requires each firm to reduce the pollution by that amount. In addition, the costs of reducing the pollution by each firm are reported in the table below.

Firm	Initial Pollution Level	Cost of Reducing Pollution
A	200 units	$300
B	200 units	$600

What is the cost of reducing pollution using this command-and-control regulation?

Hint