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UMass

ΜΑ

CA

3) Below is the graph of the marginal abatement cost schedules of two firms, A

and B. Suppose that the two firms face a uniform emissions standard Eº.

Explain why this is not a cost-effective policy to control emissions. [2

points]

ΜΑ

CB

RESEC 262 Summer

ED

Problem

Emissions

Fig: 1