Consider two firms with the following marginal reduction costs (MCR), where Q is the level of reductions:

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Consider two firms with the following marginal reduction costs (MCR), where Q is the level of reductions: Firm A MCRA = 10QA Firm B, MCRB = 5QB In an emissions trading scheme the price of emissions is $8 per unit of emissions (Q), Then ... a. no trading of emission will occur between firms' A and B b. it is cheaper for firm A to reduce emissions c. it is cheaper for firm B to reduce emissions d. firm B should buy emissions reductions from firm A

Posted Date: Jun 13, 2024 05:16 PM

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Consider two firms with the following marginal reduction costs (MCR), where Q is the level of reductions:

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