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Author Question: The diagram below shows the marginal costs of pollution abatement for two firms, Firm 1 and Firm ... (Read 41 times)

najmarocks25

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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, and this tax rate was known to equal the social marginal cost of pollution, then we can predict with confidence that


◦ the resulting level of pollution would be socially optimal.
◦ Firm 2 would increase its emissions and this would not be socially optimal.
◦ Firm 2 would increase abatement beyond Qand Firm 1 would abate less than Q3.
◦ each firm would abate to the same level.
◦ each firm would abate to Q3.


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Marked as best answer by najmarocks25 on Oct 12, 2022

koswald

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Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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najmarocks25

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Reply 2 on: Oct 12, 2022
YES! Correct, THANKS for helping me on my review


hramirez205

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Reply 3 on: Yesterday
Excellent

 

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