In the aggregate the two firms do not hold enough hcfc


Other than financial assistance, how might indus- trialized countries help developing countries to control ozone depletion?

3. Suppose that two major manufacturers of commercial refrigerants, Firm J and Firm K, face the following marginal abatement costs (MAC) for HCFCs. MACJ ¼ 1:2AJ MACK ¼ 1:8AK

In the aggregate, the two firms do not hold enough HCFC allowances to cover their production activity and must abate a combined level of 20 units. Should each firm abate 10 units each? Explain economically, and support with calculations.

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Microeconomics: In the aggregate the two firms do not hold enough hcfc
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