Figure 9.7 -A Firm That Generates Pollution Is Illustrated in Figure 9.7

question 387

Multiple Choice

Figure 9.7
-A firm that generates pollution is illustrated in Figure 9.7. The government has chosen to impose a pollution tax equal to P₂. From the firm's point of view, the marginal benefit of abatement is

• A) avoiding the pollution tax imposed by the government.
• B) the positive publicity the firm will receive by having a "green" production plant.
• C) the reciprocal of the marginal cost of abatement.
• D) zero because abatement benefits the general public, not the firm.

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The type of legal structure chosen for a business, affecting liability, taxes, and regulations.

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The state or fact of possessing something, which can include tangible items like property or intangible assets like stocks and intellectual property.

Corporation

A legal entity that exists separately from its owners.

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Any organization that possesses separate legal personality from its members, such as corporations, partnerships, and sole proprietorships.