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 _A= ae; A: j=lfor 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 image text in transcribed is the ambient pollution level.

_A= ae; A: j=l

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