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Use the following information to answer the next THREE questions: The town of Pollutionville has two smelting factories, each of which produces air pollution.The Pollutionville
Use the following information to answer the next THREE questions:
The town of Pollutionville has two smelting factories, each of which produces air pollution.The Pollutionville City Council wants to introduce a constant per unit emissions tax that will reduce total emissions from the two factories by 37.5% cost-effectively.Emission reduction would impose costs on Factory A and Factory B given by the marginal abatement cost curves in the following figure:
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