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3. In reality, there is uncertainty about how costly abatement of environmental damage will be. Assume a consultancy gives you estimates that are now more
3. In reality, there is uncertainty about how costly abatement of environmental damage will be. Assume a consultancy gives you estimates that are now more cost effective than the ones we started off with in question one. On a new diagram, draw the feasible consumption frontier based on an optimistic assessment of the costs of abatement. Be sure to explain what it is about the frontier that shows that the cost estimates are optimistic or cost effective. (4)
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