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. The government has chosen to impose a pollution tax equal to P₂. From the firm's point of view, the marginal benefit of abatement is

A) avoiding the pollution tax imposed by the government.
B) the positive publicity the firm will receive by having a "green" production plant.
C) the reciprocal of the marginal cost of abatement.
D) zero because abatement benefits the general public, not the firm.