Consider the model in section 5.3. (a) Derive the firms first-order conditions for profits maximization when they

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Consider the model in section 5.3.

(a) Derive the firm’s first-order conditions for profits maximization when they are subject to the relative standard given by Eq. (5.45).

(b) Derive a rule for the second-best optimal standard of the type given by Eq. (5.45).

Equation 5.45

Data from section 5.3

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A Course In Environmental Economics

ISBN: 9781316866818

1st Edition

Authors: Daniel J Phaneuf, Till Requate

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Question Posted: Feb 11, 2024 07:06 AM

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Consider the model in section 5.3. (a) Derive the firms first-order conditions for profits maximization when they

Question:

e e +e sa. (5.45)

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A Course In Environmental Economics

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