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Author Question: The diagram below shows the marginal costs of pollution abatement for two firms, Firm 1 and Firm ... (Read 75 times)

connormoss

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The diagram below shows the marginal costs of pollution abatement for two firms, Firm 1 and Firm 2.



FIGURE 17-5

Refer to Figure 17-5. Suppose Firm 1 and Firm 2 are each abating Qunits of pollution. If the government imposed an emissions tax of $40 per unit of emissions,


◦ Firm 1 would increase abatement beyond Qand Firm 2 would abate less than Q3.
◦ each firm would abate to Q3.
◦ Firm 2 would increase abatement beyond Qand Firm 1 would abate less than Q3.
◦ each firm would abate to the same level.
◦ the level of pollution would be optimal.


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Marked as best answer by connormoss on Oct 12, 2022

rhhoagland

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connormoss

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Reply 2 on: Oct 12, 2022
Excellent


miss.ashley

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Reply 3 on: Yesterday
:D TYSM

 

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