Essay
Suppose that the MSB and MSC of abating sulfur dioxide are as follows. Use these functions to answer parts (a) and (b) below.
MSB = 32 - 0.2A MSC = 16 + 0.2A
a. Because the NAAQS are set using a benefit-based decision rule, find the abatement level of sulfur dioxide that would adhere to this rule.
b. If instead the NAAQS were legislated to achieve efficiency, find the efficeint abatement level (AE) for sulfur dioxide.
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a. A benefit-based rule is one that igno...View Answer
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