Question: True/False/Explain (you must enter an explanation to receive a mark) Suppose for firm 1, MAC1 =24- 2E and, for firm 2 MAC2 = 16 -

True/False/Explain (you must enter an explanation to receive a mark)

Suppose for firm 1, MAC1 =24- 2E and, for firm 2 MAC2 = 16 - e. The marginal damage function is MD = 2E.If firm 1's emissions are 5 and firm 2's emissions are 2, then the outcome is socially efficient.

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