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The Marginal Social Cost (MSC) of an abatement function refers to the cost incurred by society for reducing an additional unit of pollution or environmental harm. It encompasses both the direct costs of abatement measures and the broader economic impacts, such as changes in productivity or health benefits. MSC is crucial for determining the optimal level of pollution reduction, as it helps policymakers assess the trade-offs between environmental benefits and economic costs. Understanding MSC assists in designing effective environmental regulations and policies.

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1w ago

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