The graph shows the marginal cost of abatement curve, which Price shows the extra cost to the firm of cleaning up an additional $100 unit of pollution. 90 When a pollution charge of $5 per unit cmitted is imposed, how many units of pollution will the firm choose to clean up? 80 70 Marginal cost of abatement 60 50 units of pollution cleaned up: 40 30 When a pollution tax of $20 per unit emitted is imposed, how 20 many units of pollution will the firm choose to clean up? 10 10 20 30 40 50 60 70 80 90 100 Quantity (units of pollution cleaned) units of pollution cleaned up:
The graph shows the marginal cost of abatement curve, which Price shows the extra cost to the firm of cleaning up an additional $100 unit of pollution. 90 When a pollution charge of $5 per unit cmitted is imposed, how many units of pollution will the firm choose to clean up? 80 70 Marginal cost of abatement 60 50 units of pollution cleaned up: 40 30 When a pollution tax of $20 per unit emitted is imposed, how 20 many units of pollution will the firm choose to clean up? 10 10 20 30 40 50 60 70 80 90 100 Quantity (units of pollution cleaned) units of pollution cleaned up:
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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
Transcribed Image Text:The graph shows the marginal cost of abatement curve, which
shows the extra cost to the firm of cleaning up an additional
Price
S100
unit of pollution.
90
When a pollution charge of $5 per unit emitted is imposed,
how many units of pollution will the firm choose to clean up?
80
70
Marginal cost of abatement
60
50
units of pollution cleaned up:
40
30
20
When a pollution tax of $20 per unit emitted is imposed, how
many units of pollution will the firm choose to clean up?
10
10 20 30 40 50 60 70 80 90 100
Quantity (units of pollution cleaned)
units of pollution cleaned up:
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