Question
In: Economics
Workers and retirees live together in a neighborhood with emissions from a nearby factory causing pollution....
Workers and retirees live together in a neighborhood with emissions from a nearby factory causing pollution. The marginal damages for workers is 2e and the marginal damages for the retirees is 6e. The polluting factory has a marginal savings of 20 − 2e.
1) What is the MPB of workers and retirees? What is the aggregate MSB?
2) what is the factory's marginal abatement cost (MAC)?
3) whats the optimal abatement level?
Solutions
Rahul Sunny answered 1 year agoRelated Solutions
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