Determine the optimal level of pollution reduction, Macroeconomics

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Determine the optimal level of pollution reduction

The marginal damage averted from pollution cleanup is MD = 200-5Q. The marginal cost associated with pollution cleanup is MC = 10+Q.

1. Determine the optimal level of pollution reduction?

2. Demonstrate that this level of pollution reduction could be accomplished through taxation. Explain what tax per unit would generate the optimal amount of pollution reduction?

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Macroeconomics: Determine the optimal level of pollution reduction

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Macroeconomics: Determine the optimal level of pollution reduction

Reference No:- TGS0870651

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Recent Questions Asked Macroeconomics

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Macroeconomics: Determine the optimal level of pollution reduction

Reference No:- TGS0870651

Recent Questions Asked Macroeconomics

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