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firm's marginal cost of pollution abatement is known to be MC = 650 0.25Q. The marginal benefit of pollution abatement is believed to be MB
firm's marginal cost of pollution abatement is known to be MC = 650 0.25Q. The marginal benefit of pollution abatement is believed to be MB = 10,000 - Q. For both equations, Q is abatement (pollution reduction). The government is contemplating whether to use an emissions fee or a standard to regulate pollution and has hired you as a consultant
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