Refer to the figure above.A firm facing an emissions charge of t and an abatement cost curve of MAC₁ will emit e₁and

Name: Refer to the figure above.A firm facing an emissions charge of t and an abatement cost curve of MAC 1 will emit e 1 and
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The firm will abate emissions up to the point where the marginal abatement cost (MAC) equals the emissions charge (t). In this case, the firm will abate e1 emissions and face abatement costs of (d+e) and taxation charges of (a+b+c).

Refer to the Figure Above