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Suppose there are two groups in a community affected by smog produced by cars. They place a value on reducing (abating) this pollution as follows
Suppose there are two groups in a community affected by smog produced by cars. They place a value on reducing (abating) this pollution as follows (where A is one unit of smog abated): Enviros: MB1=2500.75A The Mehs: MB2=150A Also assume that the local government owns a magic smog-reducing machine that can eliminate smog at a marginal cost of abatement as follows: MCA=100+A 1. Graph these marginal benefit curves, the combined marginal benefit curve, and the marginal cost curve. 2. What level of abatement would each group choose on its own? 3. What is the socially efficient level of emissions abatement
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