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 puts in place a cap-and-trade system which leads to an equilibrium permit price of $7.50 per tonne of emissions. With this policy in place, what is the marginal benefit and marginal cost to each firm of abating one extra tonne of GHG emissions?
◦
MB and
MC to each firm is $5.00.
◦
MC to each firm is $7.50.
MB for Firm A is $5.00;
MB for Firm B is $10.00.
◦
MB to each firm is $7.50.
MC for Firm A is $5.00;
MC for Firm B is $10.00.
◦
MB and
MC to each firm is $10.00.
◦
MB and
MC to each firm is $7.50.
The Greenhouse Effect
Monosaccharides Diagram
Diagram Showing How Conduction Aphasia is Caused
Emissions from fossil fuel burning
Buildings account for 15% of greenhouse gas emissions