When Emissions Are Measured on the Horizontal Axis, the Marginal

question 120

Multiple Choice

When emissions are measured on the horizontal axis, the marginal cost of abating emissions is:

• A) downward-sloping because emissions become more and more easy to eliminate once the firm makes the initial commitment to do so.
• B) downward-sloping because a high level of emissions is cheap to attain, and a low level of emissions is expensive to attain.
• C) upward-sloping because emissions become more and more easy to eliminate once the firm makes the initial commitment to do so.
• D) upward-sloping because a high level of emissions is cheap to attain, and a low level of emissions is expensive to attain.
• E) horizontal because the technology to remove emissions is assumed constant.

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