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## Economics

 Basic Economics Macroeconomics Microeconomics Business Economics Econometrics International Economics Managerial Economics Game Theory Public Economics

Q. An industry's marginal abatement cost is MAC=2000-e. regulator controls emissions by selling 500 permits. Though, industries are also given option of paying a fee of \$1000 per unit of emissions for which y do not hold a permit.

i Draw a diagram illustrating how industry responds to policy

ii Calculate final emissions level and total amount paid in taxes.

• Reference No.:- M9292811

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