For a firm with more than one source of emissions, the ________ states that the total costs of abating a given abatement target will be minimized when the marginal costs of abatement are ________ across sources.

Question

Quizplus · Accepted Answer

The equimarginal principle states that to minimize total costs of achieving a given level of abatement, the marginal costs of abatement should be equalized across all sources.

For a Firm with More Than One Source of Emissions