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Based on MAC= 40 2E and MD=3E, answer the following. (a) What is the socially efficient tax rate? (b) What is the net social benefit
Based on MAC= 40 2E and MD=3E, answer the following.
(a) What is the socially efficient tax rate?
(b) What is the net social benefit from emission reduction if the level of emissions is reduced to the socially desirable/optimal level of emissions (E*)?
(c) What is the net social benefit from emission reduction if all emissions are reduced (i.e., at E=0)?
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