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Lets assume that rather than having a single representative firm we have 2 refiners of gasoline who have different marginal costs of reductions: MCRz = 0+2*Q2 (Note that these two cost functions are not going to give the economy wide MCR above in part A, so dont worry if this gives different results than above.) Each firm normally emits 6 units of pollution, so there would be 12 units of pollution total.
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