Question: True/False: Suppose there are two polluting rms that have different marginal abatement cost curves, MCA 1 and MCA 2 . Any combination of pollution abatement

True/False: Suppose there are two polluting rms that have different marginal abatement cost curves, MCA₁ and MCA₂. Any combination of pollution abatement levels, A₁ for rm 1 and A₂ for rm 2, that minimizes the total cost of abatement will also produce the allocatively efficient level of total abatement A_E. Explain. Credit is given for the thoroughness of the explanation.Include a graph in your answer.

True or False: An implication of Paul Portney's benet-cost analysis of the 1990 Clean Air Act Amendments is that the United States is under-regulating air pollution. Explain. Credit is given for the thoroughness of the explanation.

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