Question
1.Suppose a polluting firm in a competitive industry has MAC = 360 - 3E. Using a subsidy program, if the government wants to reduce emissions
1.Suppose a polluting firm in a competitive industry has MAC = 360 - 3E. Using a subsidy program, if the government wants to reduce emissions from this firm to 80 units,
(a) what subsidy rate should be applied ?
(b) what is the amount of social costs of reducing emissions to 80 units?
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Physics
Authors: Alan Giambattista, Betty Richardson, Robert Richardson
2nd edition
77339681, 978-0077339685
