Refer to the figure above.Assume that the firm is facing MAC1 and that it has adjusted its permit holdings to e1.What is the firm's incentive to engage in R&D to reduce abatement costs to MAC2?
A) (a+b)
B) (a+c)
C) (a+b+c)
D) (a+b+c+d)
Correct Answer:
Verified
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