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4.2 * Consider a situation where the true aggregate marginal abatement cost curve is given by 'Cil E) = a _ bE+ and the marginal

4.2 * Consider a situation where the true aggregate marginal abatement cost curve is given by 'Cil E) = a _ bE+ and the marginal damage mction by D '(E l = d 5' The regulator believes the true marginal abatement cost curve is C'(E)= fibE with&

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