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In a market with 2 firms, the government has decided that 12 units of pollution must be abated and allocates each firm 6 units of pollution to abate. The total cost of pollution abatement for firm A is TCĄ = 19 and the total cost of pollution abatement for firm B is TCB = g° B- If a market for pollution abatement was created, how much pollution would each firm abate in equilibrium?

In a market with 2 firms, the government has decided that 12 units of pollution must be abated and allocates each firm 6 units of pollution to abate. The total cost of pollution abatement for firm A is TCĄ = 19 and the total cost of pollution abatement for firm B is TCB = g° B- If a market for pollution abatement was created, how much pollution would each firm abate in equilibrium?

Principles of Microeconomics
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter10: Externalities
Section: Chapter Questions
Problem 10PA
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In a market with 2 firms, the government has decided that 12 units of pollution must be abated and allocates each firm 6 units of pollution to abate. The total cost of pollution abatement for firm A is TCĄ = 9% and the total cost of pollution abatement for firm B is TCB B. If a market for pollution abatement was created, how much pollution would each firm abate in equilibrium? Firm A: 11 units; Firm B: 1 units O Firm A: 6 units; Firm B: 6 units Firm A: 4 units; Firm B: 8 units O Firm A: 1 units; Firm B: 11 units Firm A: 8 units; Firm B: 4 units
Transcribed Image Text:In a market with 2 firms, the government has decided that 12 units of pollution must be abated and allocates each firm 6 units of pollution to abate. The total cost of pollution abatement for firm A is TCĄ = 9% and the total cost of pollution abatement for firm B is TCB B. If a market for pollution abatement was created, how much pollution would each firm abate in equilibrium? Firm A: 11 units; Firm B: 1 units O Firm A: 6 units; Firm B: 6 units Firm A: 4 units; Firm B: 8 units O Firm A: 1 units; Firm B: 11 units Firm A: 8 units; Firm B: 4 units
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