Refer to the Figure Above If This Firm Were to Consider

question 4

Multiple Choice

Refer to the Figure above If this firm were to consider the difference between an emission tax of t* or an emissions standard of e*, what would the firm conclude is the monetary difference between the two programs?

• A) The emissions standard costs less than the taxation program by the amount of (a+b+c+d).
• B) The emissions standard costs more than the taxation program by the amount of (a+b+c+d).
• C) There is no monetary difference between the two programs.
• D) There is not enough information to determine the difference between the two programs.