(Figure: Carbon Dioxide Pollution in Duopoly) Use Figure: Carbon Dioxide Pollution in Duopoly. If the government does not intervene in the pollution market, equilibrium will occur where firm A produces_ tons of pollution, and firm B produces_____tons of pollution, for a total of_ tons. Marginal benefit | to individual producer $1,100 1,000 900 800 700 600 500 400 300 200 100 0 MBB MBA 200 O 1,000; 0; 1,000 800; 1,400; 2,200 O 0; 1,000; 1,000 600 1,000 1,400 1,800 2,200 Quantity of pollution emisions (tons) 2,000; 2,000; 4,000

ENGR.ECONOMIC ANALYSIS
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(Figure: Carbon Dioxide Pollution in Duopoly) Use Figure: Carbon Dioxide Pollution in Duopoly. If the
government does not intervene in the pollution market, equilibrium will occur where firm A produces
tons of pollution, and firm B produces_ tons of pollution, for a total of
tons.
Marginal benefit
to individual
producer
$1,100
1,000
900
800
700
600
500
400
300
200
100
0
MBB
MBA
200
1,000; 0; 1,000
800; 1,400; 2,200
0; 1,000; 1,000
600 1,000 1,400 1,800 2,200
Quantity of pollution emisions (tons)
2,000; 2,000; 4,000
Transcribed Image Text:(Figure: Carbon Dioxide Pollution in Duopoly) Use Figure: Carbon Dioxide Pollution in Duopoly. If the government does not intervene in the pollution market, equilibrium will occur where firm A produces tons of pollution, and firm B produces_ tons of pollution, for a total of tons. Marginal benefit to individual producer $1,100 1,000 900 800 700 600 500 400 300 200 100 0 MBB MBA 200 1,000; 0; 1,000 800; 1,400; 2,200 0; 1,000; 1,000 600 1,000 1,400 1,800 2,200 Quantity of pollution emisions (tons) 2,000; 2,000; 4,000
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