Question: In Section 4.8, Weitzman's Theorem on prices versus quantities is illustrated with the case in which the regulator assumes that emission abatement is more expensive

In Section 4.8, Weitzman's Theorem on prices versus quantities is illustrated with the case in which the regulator assumes that emission abatement is more expensive at the margin than it really is. Repeat the exercise assuming that the regulator believes that marginal abatement costs are lower than they really are. Repeat the exercise again assuming that the regulator believes that marginal damages costs are lower than they really are.

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