Question: Repeat exercise 9.1 using for j >0. Data from exercise 9.1 Consider firms abatement cost functions C j (e j )=(a j b
Repeat exercise 9.1 using
for αj>0.
Data from exercise 9.1
Consider firms’ abatement cost functions Cj(ej)=(aj−bjej)2/2bj and an ambient damage function D(A)=δA2/2, where
is the ambient pollution level.
_A= ae; A: j=l
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