Refer to the Figure Above

Multiple Choice

Refer to the Figure above. A firm facing an emissions charge of t and an abatement cost curve of MAC₁ will emit e₁ and

A) face abatement costs of (a+b+c+d+e) .
B) face abatement costs of (a+b+d+e) .
C) face abatement costs of (d+e) and taxation charges of (a+b+c) .
D) face abatement costs of (d+e) and taxation charges of (a+b) .