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Author Question: The diagram below shows the marginal cost of pollution abatement for two firms, Firm X and Firm ... (Read 423 times)

olsonmanny@gmail.com

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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. Firms X and Y have an emissions tax of $t imposed on each unit of pollution they produce. If Firm X chooses to abate QX units of pollution, the total cost of its abatement is


◦ tax amount t multiplied by the level of pollution abatement, QX.
◦ area beneath the marginal cost of pollution abatement curve up to QX.
◦ tax amount t multiplied by the maximum possible level of pollution abatement.
◦ area beneath the marginal cost of pollution abatement curve.
◦ area below the horizontal line at t and above the MC of pollution abatement curve.
Microeconomics ¦ Ragan ¦ 17th Edition
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Marked as best answer by olsonmanny@gmail.com on Oct 12, 2022

sadoniam

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Reply #1 on: Oct 12, 2022
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olsonmanny@gmail.com

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

xiaomengxian

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Reply 3 on: Yesterday
Gracias!

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