Consider two firms with the following marginal abatement costs (MAC) as a function of emissions (E): MAC, = 11 - 2E, , MAC2 = 7 - E2, and assume marginal external damages (MED) from the aggregate emissions of both firms (EAgg = E1 + E2) is: MED = EAgg: Total abatement costs (TAC) for both firms at the socially efficient level of aggregate emissions is (round your answer to the nearest

ENGR.ECONOMIC ANALYSIS
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Consider two firms with the following marginal abatement costs (MAC) as a
function of emissions (E): MAC, = 11 - 2E1 , MAC2 = 7 - E2, and assume marginal
external damages (MED) from the aggregate emissions of both firms (EAgg = E1
+ E2) is: MED = EAgg. Total abatement costs (TAC) for both firms at the socially
efficient level of aggregate emissions is (round your answer to the nearest
integer):
Answer:
Transcribed Image Text:Consider two firms with the following marginal abatement costs (MAC) as a function of emissions (E): MAC, = 11 - 2E1 , MAC2 = 7 - E2, and assume marginal external damages (MED) from the aggregate emissions of both firms (EAgg = E1 + E2) is: MED = EAgg. Total abatement costs (TAC) for both firms at the socially efficient level of aggregate emissions is (round your answer to the nearest integer): Answer:
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