Please write clearly and I will upvote
5. Let MAC 1 = 100 10 E and MAC 2 = 50 10 E . (1 mark) a. Graph each function and compute the aggregate MAC curve. b. Let MD = 30 E , compute the socially efficient equilibrium. c. For the equations given above, suppose the government sets the pollution level at four units. What are the net social costs of this policy? d. Suppose a technological change occurs that reduces the marginal costs of abatement for polluter 1 in the above equation to that of polluter 2 . How does this affect the socially efficient level of pollution? Solve numerically and graphically.
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Please write clearly and I will upvote 5- Let MAC1-10010E and MAC2-501.docx
1. Please write clearly and I will upvote
5. Let MAC 1 = 100 10 E and MAC 2 = 50 10 E . (1 mark) a. Graph each function and compute
the aggregate MAC curve. b. Let MD = 30 E , compute the socially efficient equilibrium. c. For
the equations given above, suppose the government sets the pollution level at four units. What
are the net social costs of this policy? d. Suppose a technological change occurs that reduces the
marginal costs of abatement for polluter 1 in the above equation to that of polluter 2 . How does
this affect the socially efficient level of pollution? Solve numerically and graphically.
