The diagram below shows the marginal costs of pollution abatement for two firms,Firm 1 and Firm 2.
FIGURE 17-5
-Refer to Figure 17-5.How much pollution abatement would Firm 2 undertake if faced with an emissions tax of $20 per unit of emissions?
A) 0
B) Q1
C) Q2
D) Q3
E) more than Q3
Correct Answer:
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