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Marginal abatement cost functions for two firms Pollutionabatement:Zi=M^iMiCurrentemissions:M^A=40andM^B=5040=ZA+ZBAbatementtarget: Homework question - For the market composed of Firm A and Firm B as in the previous
Marginal abatement cost functions for two firms Pollutionabatement:Zi=M^iMiCurrentemissions:M^A=40andM^B=5040=ZA+ZBAbatementtarget: Homework question - For the market composed of Firm A and Firm B as in the previous slide, the market-wide abatement target is set to be 40 . Demonstrate (show some calculation of) in what conditions the market-wide total cost of abatement (i.e., the sum of and ) is minimized Marginal abatement cost functions for two firms Pollutionabatement:Zi=M^iMiCurrentemissions:M^A=40andM^B=5040=ZA+ZBAbatementtarget: Homework question - For the market composed of Firm A and Firm B as in the previous slide, the market-wide abatement target is set to be 40 . Demonstrate (show some calculation of) in what conditions the market-wide total cost of abatement (i.e., the sum of and ) is minimized
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