6. MAC =9 The use of energy is one of the major causes of pollution and...

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6. MAC =9 The use of energy is one of the major causes of pollution and greenhouse gases that lead to climate change. It is desirable to reduce the emissions from energy use. Suppose there are two firms whose marginal abatements costs are as follows: MAC2=292 where q, is the amount of emissions reduction by firm 1 and q2 is the amount of emissions reduction by firm 2. a. b. C. In the context of this question, what is "marginal abatement cost"? Draw the two marginal abatement costs in a single diagram. if both firms reduce the total amount of emissions by 30 units, calculate the quantities by which each firm will reduce emissions. 6. MAC =9 The use of energy is one of the major causes of pollution and greenhouse gases that lead to climate change. It is desirable to reduce the emissions from energy use. Suppose there are two firms whose marginal abatements costs are as follows: MAC2=292 where q, is the amount of emissions reduction by firm 1 and q2 is the amount of emissions reduction by firm 2. a. b. C. In the context of this question, what is "marginal abatement cost"? Draw the two marginal abatement costs in a single diagram. if both firms reduce the total amount of emissions by 30 units, calculate the quantities by which each firm will reduce emissions.

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a Marginal abatement cost refers to the cost incurred by a firm to reduce one unit o... View the full answer