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Refer to Figure 28

Question 96

Multiple Choice

  Refer to Figure 28.2.If there were no emissions fees on a firm, its marginal cost curve would be A)  MC<sub>1.</sub> B)  MC<sub>3.</sub> C)  MC<sub>2.</sub> D)  Price = MC<sub>1</sub> plus social MC. Refer to Figure 28.2.If there were no emissions fees on a firm, its marginal cost curve would be


A) MC1.
B) MC3.
C) MC2.
D) Price = MC1 plus social MC.

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