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

Question 46

Multiple Choice

Figure 9.7 -A firm that generates pollution is illustrated in Figure 9.7. If the government imposes a pollution tax equal to P₂ and the firm's abatement level is A₃ the firm is A) abating more than is optimal for the firm. B) abating less than is optimal for the firm. C) choosing an abatement level that is optimal. D) violating the environmental protection laws. Figure 9.7
-A firm that generates pollution is illustrated in Figure 9.7. If the government imposes a pollution tax equal to P₂ and the firm's abatement level is A₃ the firm is


A) abating more than is optimal for the firm.
B) abating less than is optimal for the firm.
C) choosing an abatement level that is optimal.
D) violating the environmental protection laws.

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