Question: Suppose that a regulator plans regulate particulate matter (E) from two wood-fired pizza restaurants. The marginal damages from particulate matter are given by MD =

Suppose that a regulator plans regulate particulate matter (E) from two wood-fired pizza restaurants. The marginal damages from particulate matter are given by MD = 5. The marginal abatement cost curves for the two restaurants are: Restaurant 1: MAC1 = 10 E1 Restaurant 2: MAC2 = 6 E2

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