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On the graph below, if the government grants a firm an abatement subsidy to reduce emissions down to the socially optimal level, the effect on the government budget will be: 4 2 18 20 a. A gain of $2,000 b. A loss of $4,000 1 C. A loss of $36,000 d. A gain of $8,000 MBE SMCE MCE → E (1,000 tons)

On the graph below, if the government grants a firm an abatement subsidy to reduce emissions down to the socially optimal level, the effect on the government budget will be: 4 2 18 20 a. A gain of $2,000 b. A loss of $4,000 1 C. A loss of $36,000 d. A gain of $8,000 MBE SMCE MCE → E (1,000 tons)

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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On the graph below, if the government grants a firm an abatement subsidy to reduce emissions down to the socially optimal level, the effect on the government budget will be: 4 2 O 18 a. A gain of $2,000 b. A loss of $4,000 C. A loss of $36,000 d. A gain of $8,000 20 MBE SMCE MC E € (1,000 tons)
Transcribed Image Text:On the graph below, if the government grants a firm an abatement subsidy to reduce emissions down to the socially optimal level, the effect on the government budget will be: 4 2 O 18 a. A gain of $2,000 b. A loss of $4,000 C. A loss of $36,000 d. A gain of $8,000 20 MBE SMCE MC E € (1,000 tons)
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