Figure 9.7
-A firm that generates pollution is illustrated in Figure 9.7. If the government would like to induce this firm to abate, or reduce, its pollution by A₁ tons, it will impose a pollution tax equal to
A) P₃.
B) P₁ minus P₃.
C) P₂.
D) P₂ minus P₃.

Question

Figure 9.7
-A firm that generates pollution is illustrated in Figure 9.7. If the government would like to induce this firm to abate, or reduce, its pollution by A₁ tons, it will impose a pollution tax equal to
A) P₃. 
B) P₁ minus P₃. 
C) P₂. 
D) P₂ minus P₃.

Quizplus · Accepted Answer

The Answer of  Figure 9.7
-A firm that generates pollution is illustrated in Figure 9.7. If the government would like to induce this firm to abate, or reduce, its pollution by A₁ tons, it will impose a pollution tax equal to
A) P₃. 
B) P₁ minus P₃. 
C) P₂. 
D) P₂ minus P₃.

Figure 9.7 -A Firm That Generates Pollution Is Illustrated in Figure 9.7