Texas is one of the leading producers of peaches in the United States. Some of these peaches are sold to the local processing plants for canning. In addition to the canned peaches, which are sold in a perfectly competitive marketplace, liquid waste is produced, which must be removed by canners (i.e., the processors). A local environmental group is lobbying the Texas legislature to regulate the release of this liquid waste, which is often released into a nearby stream or sewer. Downstream from the canning processors in Texas is a popular outdoor recreation area, with a lake that is often used for swimming, boating and fishing. When the volume of the liquid waste is at its peak during the summer months, the lake can become unsuitable for fishing and swimming, due to the increase in bacterial growth as a result of the liquid waste. The marginal cost of canning peaches for the industry is: M C c a n n i n g = 2 , 000 + 0.157 Q where Q represents output of canned peaches in thousands of cases per week. The marginal costs of the released liquid waste have been estimated by a local environmental group to be: M C w a s t e = 0.043 Q Demand for canned peaches is (where P is the price per thousand cases):