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environmental economics It is well documented that carbon monoxide (CO) emissions from combustible engines increase in colder climates. This implies that damages are expected to

environmental economics

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It is well documented that carbon monoxide (CO) emissions from combustible engines increase in colder climates. This implies that damages are expected to be less severe in summer months than in winter. Nonetheless, air quality control authorities use a standard for CD that is uniform throughout the year with no allowance for seasonal effects. Use this information and the following model to answer the questions: M83 of CO abatement in winter = 350 ELSA, M83 of CO abatement in summer = 140 0.2/4, MSG of CO abatement = 0.2.4, where A is the level of CO abatement. a. Graph the M33 and MSCfunctions on the same diagram. b. Assume the government sets a uniform standard for winter and summerat A=500. Support or refute this policy based on the criterion of allocative efficiency, using your model to explain your response. c. If you were in charge of setting policy for CO emissions, what action would you recommend to ensure an allocativelv efficient outcome across the two seasons

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