Economists define the efficient amount of fund pollutants as the amount that minimizes the sum of damage and control costs. Using this definition, they derive two general rules, one of which is that the efficient level of pollution is not generally zero. Briefly explain why this is true.

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A: Answer in step 2.

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A: Given, A 30 units $20 B 40 units $30 C 20 units $10

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A: The mentioned parts are solved as follows:

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Q: There are three industrial firms in Happy Valley. Initial Pollution Cost of Reducing Firm Level…

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Q: Why is the efficient level of pollution not equal to zero?

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