The graph above represents a bilateral transboundary pollutant and the economics of reaching an agreement between two countries, Country A and Country B. MD; represents total damages of A and B. Answer the following discussion questions: 1. Question 1: How could one interpret the amount calculated by (MD: -MD,)? 2. Question 2: In your opinion, what point would Country A regard as efficient level of emissions without regard to the externalities it produces in Country B? Explain your answer.

The graph above represents a bilateral transboundary pollutant and the economics of reaching an agreement between two countries, Country A and Country B. MD; represents total damages of A and B. Answer the following discussion questions: 1. Question 1: How could one interpret the amount calculated by (MD: -MD,)? 2. Question 2: In your opinion, what point would Country A regard as efficient level of emissions without regard to the externalities it produces in Country B? Explain your answer.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter10: Externalities

Section: Chapter Questions

Problem 2PA

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