Solve for socially efficient equilibrium

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Reference no: EM13800430

Suppose the following system of equations: MAC = 60, 4E, MD = 2E, where E=level of emission per month

a. Solve for socially efficient equilibrium. Show it graphically.

b. Compute total damage (TD) at this equilibrium.

c. Compute total abatement costs (TAC) at this equilibrium.

d. Compute the net social value at this equilibrium.

Reference no: EM13800430

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