Refer to the Figure Above

question 22

Multiple Choice

Refer to the figure above.Assume that a firm is facing MAC₁ and an admissions standard of e₂.What is the firm's reduction in compliance costs in obtaining the emission standard of e₂ if the firm is successful in reducing abatement costs from MAC₁ to MAC₂?

• A)a
• B)(e+d+c)
• C)(a+b+c+d)
• D)(a+b)

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