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Author Question: The diagram below shows the marginal cost of abatement of greenhouse-gas emissions(GHGs) for each of ... (Read 54 times)

yulisa3298

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on: Oct 12, 2022

The diagram below shows the marginal cost of abatement of greenhouse-gas emissions (GHGs) for each of two firms, A, and B.



FIGURE 17-7

Refer to Figure 17-7. Suppose the government objective is to abate a total of 40 tonnes of GHG emissions between the two firms. The lowest-cost approach is to impose an emissions tax of $7.50 per tonne emitted. Why is this the lowest-cost approach?


◦ Because the MC curves for the two firms are parallel.
◦ Because at any other level of emissions tax, the total abatement costs would be higher.
◦ Because direct controls are always lower-cost than an emissions tax.
◦ Because the average costs of emissions are equalized across the two firms.
◦ Because marginal abatement costs are equalized across the two firms.
Microeconomics ¦ Ragan ¦ 17th Edition
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Marked as best answer by yulisa3298 on Oct 12, 2022

AarionnaH

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Reply #1 on: Oct 12, 2022
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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yulisa3298

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Reply 2 on: Oct 12, 2022
Thanks for the timely response, appreciate it

marict

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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