Suppose the following system of equations mac 60 4e md 2e, Business Economics

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Suppose the following system of equations mac 60 4e md 2e

Suppose the following system of equations: MAC = 60, 4E, MD = 2E, where E=level of emission per month

a. Solve for socially efficient equilibrium. Show it graphically.

b. Compute total damage (TD) at this equilibrium.

c. Compute total abatement costs (TAC) at this equilibrium.

d. Compute the net social value at this equilibrium.

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Business Economics: Suppose the following system of equations mac 60 4e md 2e

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Business Economics: Suppose the following system of equations mac 60 4e md 2e

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