The Marginal Cost of Enforcement (MCE)

question 18

Multiple Choice

The marginal cost of enforcement (MCE)

• A) is the additional cost incurred by government to monitor and enforce abatement activity
• B) is a negatively sloped function
• C) can be measured as the vertical sum of MAC_mkt and MSC at any abatement level
• D) represents the horizontal sum of all polluters' MAC functions

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