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Suppose that two firms, X and Y , face the following abatement costs, where A is the abatement ( pollution reduction ) chosen by the

Suppose that two firms, X and Y, face the following abatement costs, where A is the abatement (pollution reduction) chosen by the firm:
MACX =1.2AX, MACY =0.3AY
TACX =0.6AX2 TACY =0.15AY2
Further assume that the combined abatement standard is 40 units for both firms.

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