Refer to the Figure Above

Multiple Choice

Refer to the Figure above. The firm is facing an emissions charge of t and an abatement cost curve of MAC₁. If the firm is able to lower its abatement cost curve to MAC_2, and it now faces an emissions standard of e₁, the firm will

A) emit at level e₁ and save (d+e)
B) emit at level e₁ and save (d)
C) emit at level e₂ and save (c+d) .
D) emit at level e₁ and save (d+e) .