Refer to the Figure Above If This Firm Were to Consider

Multiple Choice

Refer to the Figure above If this firm were to consider the difference between an emission tax of t* or an emissions standard of e*, what would the firm conclude is the monetary difference between the two programs?

A) The emissions standard costs less than the taxation program by the amount of (a+b+c+d) .
B) The emissions standard costs more than the taxation program by the amount of (a+b+c+d) .
C) There is no monetary difference between the two programs.
D) There is not enough information to determine the difference between the two programs.