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The market demand function is: X(p) = 51 5p. There are 5 identical firms with firm-level private cost function C(y) = 1 2 y 2
The market demand function is: X(p) = 51 5p. There are 5 identical firms with firm-level private cost function C(y) = 1 2 y 2 1.2. The production, however, generate pollution to the environment, with a firm-level pollution cost Ce(y) = 1 2 y 2
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