Show that proposition 5.1 holds for asymmetric firms. Proposition 5.1 Proposition 5.1 Under the assumptions of the

Show that proposition 5.1 holds for asymmetric firms.

Proposition 5.1

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Proposition 5.1 Under the assumptions of the model, the introduction (or increase) of an emissions tax leads to: (a) a decrease in both individual firms' and aggregate emission levels;