The figure below shows the marginal abatement costs for two firms, the aggregate marginal abatement cost and a uniform per-unit emissions tax of t. Use the figure to answer Questions 13 – 14.   [13] Assume an emissions tax is set at t as in the figure above. What is Firm 2’s emissions level under the tax?

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The figure below shows the marginal abatement costs for two firms, the aggregate marginal abatement cost and a uniform per-unit emissions tax of t. Use the figure to answer Questions 13 – 14.  

[13] Assume an emissions tax is set at t as in the figure above. What is Firm 2’s emissions level under the tax? 

 

a
Marginal abatement cost of Firm 1
b C
d
Marginal abatement cost of Firm 2
E
Aggregate marginal abatement cost
Emissions
Transcribed Image Text:a Marginal abatement cost of Firm 1 b C d Marginal abatement cost of Firm 2 E Aggregate marginal abatement cost Emissions
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