Consider two firms with the following marginal abatement costs (MAC) as a function of emissions (E): MAC_1 = 16-2E_1 MAC_2 = 12- E_2, and assume marginal external damages (MED) from aggregate emissions from the two firms (E_Agg = E_1 + E_2) is: MED = E_Agg. Total external damages (TED) at the socially efficient level of aggregate emissions (E*_Agg) is

Consider two firms with the following marginal abatement costs (MAC) as a function of emissions (E): MAC_1 = 16-2E_1 MAC_2 = 12- E_2, and assume marginal external damages (MED) from aggregate emissions from the two firms (E_Agg = E_1 + E_2) is: MED = E_Agg. Total external damages (TED) at the socially efficient level of aggregate emissions (E*_Agg) is

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Chapter1: Making Economics Decisions

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i will 10 upvotes urgent .

Consider two firms with the following marginal abatement costs (MAC) as a
function of emissions (E):
MAC_1 = 16-2E_1
MAC_2 = 12- E_2,
and assume marginal external damages (MED) from aggregate emissions from
the two firms (E_Agg = E_1 + E_2) is:
MED = E_Agg.
Total external damages (TED) at the socially efficient level of aggregate emissions
(E*_Agg) is

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