5. Diggers Extraction's total abatement cost is TC = 40 + 2 Q?, so its marginal abatement cost is MC= 4Q, where Q is the amount of abatement. If there is an emissions tax of $120 per unit, what is this firm's total abatement cost? A) $6.32 B) $80 C) $1,940 D) $28,840
5. Diggers Extraction's total abatement cost is TC = 40 + 2 Q?, so its marginal abatement cost is MC= 4Q, where Q is the amount of abatement. If there is an emissions tax of $120 per unit, what is this firm's total abatement cost? A) $6.32 B) $80 C) $1,940 D) $28,840
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter17: Long-term Investment Analysis
Section: Chapter Questions
Problem 2.2CE
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![5. Diggers Extraction's total abatement cost is TC = 40 + 2 Q?, so its marginal abatement cost is MC= 4Q, where Q is
the amount of abatement. If there is an emissions tax of $120 per unit, what is this firm's total abatement cost?
A) $6.32
B) $80
C) $1,940
D) $28,840](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8c82151c-5a30-4c95-b4fc-a06b482828b3%2F039c8e61-4086-45a7-90d2-cc4a92ed2ca0%2F8as6ad8_processed.png&w=3840&q=75)
Transcribed Image Text:5. Diggers Extraction's total abatement cost is TC = 40 + 2 Q?, so its marginal abatement cost is MC= 4Q, where Q is
the amount of abatement. If there is an emissions tax of $120 per unit, what is this firm's total abatement cost?
A) $6.32
B) $80
C) $1,940
D) $28,840
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