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The Rocky Mashed Potato Factory produces output at costs ( marginal costs ) , where is the quantity of mashed potatoes produced, in tons. In
The Rocky Mashed Potato Factory produces output at costs
marginal costs
where
is the quantity of mashed potatoes produced, in tons. In addition, units of emissions are produced for each ton of mashed potatoes
Pollution damage is $ for each unit of emissions, which leads the government to charge $ per unit of emissions as a Pigovian fee. The firm's output sells competitively for
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