If the firm faced a standard of 40 units of emissions,what is the maximum amount of money it would be willing to spend on R&D to achieve the lower MAC?
A)$200
B)$400
C)$600
D)$800

Question

Quizplus · Accepted Answer

The firm would be willing to spend up to $200 on R&D to achieve the lower MAC, as this is the difference between the cost of the standard and the cost of the lower MAC.

If the Firm Faced a Standard of 40 Units of Emissions,what