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Consider MAC=60-4E and MD = E. suppose the government does not have this information about marginal abatement costs and marginal damages to exactly know where the socially efficient scale (level) of emissions should be. it, therefore, decides somewhat randomly to start an environmantal program that keeps the emission level at 10 units and consider doing sensitivity analysis afterwards. then,

A. what is the net social benefits at E= 10?

B. Will the net social benefits increase or decrease if E is changed to 11, and 9?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M968550

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