The marginal damage cost equation for carbon monoxide (CO) in urban areas is: MDCU = 36E; The marginal damage cost equation for CO in rural areas is:  MDCR = 6E. The marginal abatement cost equation for CO is:  MAC = 400 - 4E What are the socially efficient individual standards for carbon monoxide? What is the total abatement cost in each area under

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The marginal damage cost equation for carbon monoxide (CO) in urban areas is: MDCU = 36E;

The marginal damage cost equation for CO in rural areas is:  MDCR = 6E.
The marginal abatement cost equation for CO is:  MAC = 400 - 4E

  • What are the socially efficient individual standards for carbon monoxide?
  • What is the total abatement cost in each area under this scheme? 
  • What is the total compliance cost under this scheme? 
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