the graph below shows the marginal social benefit and marginal social cost of pollution a1 ptwhat is the optimal level of pollution shown on the graph b1 pt would a new regulation that resul 89422
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SOLVED: For the utility functions below; derive the marginal utilities of good €1 (MU:1 and €2 (MUz2) and the marginal rate of substitution (MRS) U(z1, T2) T1T2 b. U(€1, 82) = lnc In €2 c U(T1, T2) titz 1-0 d. U(T1, 82) (2? 22)1/ Assume a consumer's utility function is given by U(€1, T2) Axfoz where A 10 and a = 0.5. a. Determine if the marginal utility of €1 (MU:I diminishes as the consumer consumes additional units of T1, ceteris paribus. b. Determine ifthe marginal utility of €2 (MU.; dim
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SOLVED:Marty and Ann discussed the rule of equal marginal utility per dollar spent, a topic that was recently covered in the economics course they were both taking: Marty: "When I use my calculator to divide the marginal utility of pizza by a price of zero, I don'tg e t   a n   a n s w e r .   This result must mean that if pizza were being sold for a price of zero, the quantity demanded would be infinite." Ann: "Marty, that can't be true. No producer would be willing to 'sell' pizza, or any othe
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