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Author Question: The diagram below shows the marginal cost of pollution abatement for two firms, Firm X and Firm ... (Read 394 times)

april 19

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on: Oct 12, 2022

The diagram below shows the marginal cost of pollution abatement for two firms, Firm X and Firm Y.



FIGURE 17-6

Refer to Figure 17-6. (For this question, ignore the horizontal line at t.) Suppose the government wants to impose an emissions tax. For this tax to be efficient, the government must


◦ tax only the high-cost firm (Firm Y) and fix the amount of pollution abatement for the low-cost firm (Firm X).
◦ tax only the low-cost firm (Firm X) and fix the amount of pollution abatement for the high-cost firm (Firm Y).
◦ choose a different tax rate for each firm so that each firm abates QR units of pollution.
◦ levy a tax at the same rate to both firms.
◦ impose the same tax on both firms and also fix the amount of pollution abatement at QR for each firm.
Microeconomics ¦ Ragan ¦ 17th Edition
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Marked as best answer by april 19 on Oct 12, 2022

jacquelyngibson

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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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april 19

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

isabelt_18

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Reply 3 on: Yesterday
Wow, this really help

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