Post by: xxxxxxxxxxxx on Oct 12, 2022
The diagram below shows the marginal cost of pollution abatement for two firms, Firm X and Firm Y.
FIGURE 17-6
Refer to Figure 17-6. There is an emissions tax of $t per unit of pollution. The resulting amount of pollution abatement is socially optimal if
◦ the emissions tax causes no change in firms' polluting activity.
◦ each firm abates at QR.
◦ the emissions tax is equal to the marginal social cost of pollution.
◦ each firm pays the maximum amount of tax.
◦ Firm X abates QX and Firm Y abates QY.
Post by: dsfhkjdfaskjfdsjk on Oct 12, 2022
Post by: depress hun on Dec 2, 2022