1.33E3 The marginal damage function for the region is given as {where ET = E1 + E2 +E3} a) Find the aggregate MAC for the region. B) Find the socially optimal level of Emissions for the region c) Suppose that the government imposes a Uniform Standard on the three firms that achieves the socially optimal level. What will be each firm”s MAC and TAC? D) Now, instead of a standard, the government uses an Emission Tax.
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