In the Multiple-Polluter Case, Each Firm Faced with an Emission

question 27

True/False

In the multiple-polluter case, each firm faced with an emission charge implemented as a marginal tax (MT) abates up to the point where MAC equals MT, which results in a cost-effective solution.

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Definitions:

Shaping

a method of training by which successive approximations toward a desired behavior are reinforced until the behavior is achieved.

Successive Approximations

A method used in behavioral psychology involving the reinforcement of behaviors that are increasingly similar to the desired behavior.

Reinforcements

In psychology, reinforcements refer to incentives or consequences that strengthen the behavior they follow, making it more likely to occur in the future.

Chaining

A behavioral technique of teaching complex tasks by breaking them down into simpler steps or components.