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QUESTION
Suppose that the marginal savings from emission for firms A and B are 30 e1 and 15 1 e2, respectively. Assume that aggregate marginal 2 damage per...
Suppose that the marginal savings from emission for firms A and B are 30 − e1 and 15 − 1 e2, respectively. Assume that aggregate marginal2damage per unit of emission is e.(a) Plot marginal savings, aggregate marginal saving and aggregatemarginal damage of this economy.(b) What is the efficient level of emission?
