Consider two firms with the following marginal abatement costs (MAC) as a function of emissions (E): MAC 116-2E_1 MAC_2= 12-E_2, and assume marginal external damages (MED) from aggregate emissions from the two firms (E_Agg=E_1 + E_2) is: MED = E_Agg. Total abatement costs (TAC) for both firms at the socially efficient level of aggregate emissions (E_Agg) is______ Answer:

Consider two firms with the following marginal abatement costs (MAC) as a function of emissions (E): MAC 116-2E_1 MAC_2= 12-E_2, and assume marginal external damages (MED) from aggregate emissions from the two firms (E_Agg=E_1 + E_2) is: MED = E_Agg. Total abatement costs (TAC) for both firms at the socially efficient level of aggregate emissions (E_Agg) is______ Answer:

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter17: Externalities And The Environment

Section: Chapter Questions

Problem 6QFR

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