Recall the Application about how to wash carbon out of the air to answer the following question(s).
-Recall the Application. Assume a firm that produces CO2 has a marginal cost of abatement of $90 per ton and faces a carbon tax of $70 per ton. If the cost of carbon washing is $50 per ton, the firm could save ________ per ton and emit ________ carbon into the atmosphere by using a carbon washing machine.
A) $40; less
B) $40; more
C) $20; less
D) $20; more

Question

Quizplus · Accepted Answer

The firm saves $40 per ton by choosing carbon washing over paying the carbon tax ($70 - $50 = $20 savings). By using carbon washing, they emit less carbon into the atmosphere compared to not taking any action.

Recall the Application About How to Wash Carbon Out of the Air