Figure 18.2.2 -If the MSB/MCA Graph Indicates That an Emissions Fee of Fee

Multiple Choice

Figure 18.2.2
-If the MSB/MCA graph indicates that an emissions fee of $10 per unit would lead to the optimum level of emissions, but the government set a fee of $5 per unit, emissions would:

A) not be reduced at all.
B) not occur at all.
C) be above the optimum level, but curtailed somewhat from what they would have been with no fee at all.
D) be above the optimum level by 50%.
E) be below the optimum level by 50%.