Refer to the Figure Above

question 32

Multiple Choice

Refer to the Figure above. The firm is facing an emissions charge of t and an abatement cost curve of MAC₁. If the firm is able to lower its abatement cost curve to MAC_2, it will

• A) emit at level e₁ and save (d+e).
• B) emit at level e₁ and save (d).
• C) emit at level e₂ and save (c+d).
• D) emit at level e₁ and save (d+e)