Imagine a firm's marginal abatement cost function with existing technologies is: MAC = 16 - 2E. If the firm adopts new pollution abatement technologies, its marginal abatement cost function will be: MAC = 8 -E. If the government raises the tax on emissions from $2 to $3, the benefits of adopting the new technologies increase by $ Select one: O a. $1.25. O b. $4.50. O C. $2. O d. $1.75

Imagine a firm's marginal abatement cost function with existing technologies is: MAC = 16 - 2E. If the firm adopts new pollution abatement technologies, its marginal abatement cost function will be: MAC = 8 -E. If the government raises the tax on emissions from $2 to $3, the benefits of adopting the new technologies increase by $ Select one: O a. $1.25. O b. $4.50. O C. $2. O d. $1.75

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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