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.
Plant Parts Diagram
From space earth shows itself as a planet covered mostly by water.
Fetal Circulation Diagram
Human Lungs Diagram
back of neck diagram
The Greenhouse Effect: Influences on Temperature