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Two farmers, a and b, each apply 100 tons of manure on their fields. to reduce manure runoff, the government has decided to require a permit for each ton of manure applied. the government gives each farmer 50 tradeable permits. farmer a incurs losses of $25 for each ton of manure he does not apply, and farmer b incurs losses of $50 for each ton of manure he does not apply. after permit trading, we would expect that
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Two farmers, a and b, each apply 100 tons of manure on their fields. to reduce manure runoff, the go...
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