Maximize the net benefit from reducing acid rain

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If the committee wants to maximize the net benefit from reducing acid rain, what is the optimal level of pollution reduction? 3.[5 points] Suppose that a perfectly competitive industry is in long-run equilibrium. Then the price of a complement good decreases. What will happen? A. Next period a typical firm will increase output. B. Next period a typical firm will earn a greater than normal profit. C. Eventually firms will exit the industry.

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