Assume now that production and care cost are not separable but are instead represented by a joint
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Assume now that production and care cost are not separable but are instead represented by a joint cost function C(x,a). What assumptions should be imposed on C(x,a)? Determine the socially optimal levels of output and care as well as the competitive and solvent firm’s choice of output and level of care under the strict liability and the negligence rules, for an arbitrary due care level ā.
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Related Book For
A Course In Environmental Economics
ISBN: 9781316866818
1st Edition
Authors: Daniel J Phaneuf, Till Requate
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