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[Solved]: Suppose that chemicals from a mining site pollute
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(Solved): Suppose that chemicals from a mining site pollute a nearby lake, which also happens to be used by a ...



Suppose that chemicals from a mining site pollute a nearby lake, which also happens to be used by a fishery to raise fish. The marginal damage from chemical emissions to the fishery is given by MD = 2E. The marginal abatement cost to the mining company factory is given by MAC = 90 - 3E. An environmental dispute arises; and, as a settlement of the environmental dispute, the fishery is given the right to use the lake.



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