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ollute y mu

ollute y mu

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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E3
A polluter's costs are given by MAC = 228 - 1.5E. They must pay an emission tax of $72 per unit. Assume the polluter chooses their optimal emission level. What would be their incentive to lower their costs to MAC = 190 - 1.25E? %D
Transcribed Image Text:A polluter's costs are given by MAC = 228 - 1.5E. They must pay an emission tax of $72 per unit. Assume the polluter chooses their optimal emission level. What would be their incentive to lower their costs to MAC = 190 - 1.25E? %D
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