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Suppose that an environmental lobby pushes the government for new regulations, which will double the cost of lowering marginal costs. If the regulation passes, the
Suppose that an environmental lobby pushes the government for new regulations, which will double the cost of lowering marginal costs. If the regulation passes, the new schedule will be: reducing costs to 4 costs 2, reducing costs to 3 costs 6 and reducing costs to 2 costs 12. Solve for the impact of such regulation on the game. Should the rms be for or opposed to the regulation and briey discuss why
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