21.10 Policy Application: Pollution that Increases Firm CostsBarneys Solution: Consider the same situation as the one described

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21.10 Policy Application: Pollution that Increases Firm Costs—Barney’s Solution: Consider the same situation as the one described in exercise 21.9.

A. Assume again that the only impact of pollution is that it increases firm fixed costs by d for every unit of x that is produced in the industry.

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