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Refer to the Figure Above

Question 1

Multiple Choice

Refer to the Figure above. If the firm above faced an emissions charge of $ t* per ton/month and the firm is producing at the socially efficient level of emissions, what is the value of the total abatement cost?


A) t* (a+b+c+d)
B) (a+b+c+d+e)
C) (a+b+c+d)
D) (b+d+e)

Correct Answer:

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