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When Faced with a Marginal Effluent Fee (MEF), Each Polluting

Question 22

Multiple Choice

When faced with a marginal effluent fee (MEF) , each polluting source will


A) abate up to the point where its total abatement cost (TAC) equals the MEF
B) abate nothing and pay the MEF on all units of pollution released
C) clean up pollution as long as its marginal abatement cost is lower than the MEF
D) reduce its effluents to zero to avoid paying the effluent fee

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