When There Is Uncertainty About the Marginal Abatement Cost Curve

question 2

Multiple Choice

When there is uncertainty about the marginal abatement cost curve and the marginal damage cost curve is ________,a transferable emission permit or a standard equal to the ________ is the socially efficient policy.

• A)horizontal;socially efficient level of emissions
• B)horizontal;marginal damages
• C)vertical;socially efficient level of emissions
• D)vertical;socially efficient level of abatement

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Definitions:

Acknowledgement

Recognition or acceptance of the truth or existence of something, often showing appreciation or confirmation.

Responsibility

A duty or obligation to satisfactorily perform or complete a task that one has accepted, or which is imposed by law, duty, or contractual agreement.

Reparation

Compensation or restitution for wrongs or damages, often discussed in the context of historical injustices.

Reconciliation

The act of restoring harmony or agreement between individuals or groups, especially after a conflict or dispute.