Suppose that a firm's marginal abatement cost function with existing technologies is MAC = 16 - 2E. If the firm adopts new pollution abatement %3D technologies, then its marginal abatement cost function will become MAC = 8 - E. If the government raises the emissions tax from $2 to $3, then the benefits of adopting the new technologies increase by $. %3D (Hint: recall that the benefits from adopting new technologies are simply the difference in total compliance costs.) Please round your final answer to two decimal places if necessary. Answer:
Suppose that a firm's marginal abatement cost function with existing technologies is MAC = 16 - 2E. If the firm adopts new pollution abatement %3D technologies, then its marginal abatement cost function will become MAC = 8 - E. If the government raises the emissions tax from $2 to $3, then the benefits of adopting the new technologies increase by $. %3D (Hint: recall that the benefits from adopting new technologies are simply the difference in total compliance costs.) Please round your final answer to two decimal places if necessary. Answer:
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Suppose that a firm's marginal abatement cost function with existing
technologies is MAC = 18 - 2E. If the firm adopts new pollution abatement
technologies, then its marginal abatement cost function will become MAC =9 -
E. With an emissions tax of $4, the benefits of adopting the new technologies
%3D
are $_.
(Hint: recall that the benefits of adopting new technologies is simply the
difference in total compliance costs.)
Please round your final answer to two decimal places if necessary.
Answer:
Suppose that a firm's marginal abatement cost function with existing
technologies is MAC = 16 - 2E. If the firm adopts new pollution abatement
!3!
technologies, then its marginal abatement cost function will become MAC = 8 -
E. If the government raises the emissions tax from $2 to $3, then the benefits of
adopting the new technologies increase by $.
(Hint: recall that the benefits from adopting new technologies are simply the
difference in total compliance costs.)
Please round your final answer to two decimal places if necessary.
Answer:
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