Figure 9.7 -A Firm That Generates Pollution Is Illustrated in Figure 9.7

Multiple Choice

Figure 9.7
-A firm that generates pollution is illustrated in Figure 9.7. If the government would like to induce this firm to abate, or reduce, its pollution by A₁ tons, it will impose a pollution tax equal to

A) P₃.
B) P₁ minus P₃.
C) P₂.
D) P₂ minus P₃.