The equimarginal principle states that in order to get the greatest reductions in _______emissions for a given _________ abatement cost, all firms should emit at a point that offers the same marginal abatement cost for each firm.
A) total; total
B) marginal; marginal
C) total; marginal
D) marginal; total

Question

Quizplus · Accepted Answer

The equimarginal principle suggests that to achieve the greatest total reductions in emissions for a given total abatement cost, each firm should operate where the marginal abatement costs are equal across all firms. This ensures cost-effectiveness in reducing pollution.

The Equimarginal Principle States That in Order to Get the Greatest