11. Dry-cleaning establishments generate a considerable amount of air pollution in producing cleaning services. Suppose these firms...

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11. Dry-cleaning establishments generate a considerable amount of air pollution in producing cleaning services. Suppose these firms are allowed to pollute without restriction and that reducing their pollution would add significantly to their production costs. Who benefits from the fact that they pollute the air? Now suppose the government requires them to reduce their pollution. Who will pay for the cleanup?

(Assume dry cleaning is a perfectly competitive industry, and answer these questions from a long-run perspective.)

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Principles Of Microeconomics

ISBN: 9781843317708

1st Edition

Authors: Libby Rittenberg, Timothy Tregarthen

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