The graph shows the marginal cost of abatement curve, which shows the extra cost to the firm of cleaning up an additional unit of pollution. When a pollution charge of $5 per unit emitted is imposed, how many units of pollution will the firm choose to clean up?   units of pollution cleaned up:     When a pollution tax of $20 per unit emitted is imposed, how many units of pollution will the firm choose to clean up? units of pollution cleaned up:

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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The graph shows the marginal cost of abatement curve, which shows the extra cost to the firm of cleaning up an additional unit of pollution.

When a pollution charge of $5 per unit emitted is imposed, how many units of pollution will the firm choose to clean up?

 
units of pollution cleaned up:
 
 
When a pollution tax of $20 per unit emitted is imposed, how many units of pollution will the firm choose to clean up?
units of pollution cleaned up:
 
Price
$100
90
80
70
Marginal cost of abatement
60
50
40
30
20
10
10
20
30
40
50
60
70
80
90 100
Quantity (units of pollution cleaned)
Transcribed Image Text:Price $100 90 80 70 Marginal cost of abatement 60 50 40 30 20 10 10 20 30 40 50 60 70 80 90 100 Quantity (units of pollution cleaned)
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