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Find the socially optimal level of emissions

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Question: Consider a good for which production generates external costs. Let the marginal external cost function be MEC=aE, where a is your 1-digit number, and E the quantity of emissions. The pollution can be abated at a cost. Let the marginal cost of abatement function be MCA=B-cE, where B is your 2-digit number and c is your median number. Find the socially optimal level of emissions, and the optimal value of abatement costs and external cots.

Reference no: EM132206588

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