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A polluter with Mac 120-2E faces an emission tax rate of $ 40 / units . If its marginal abatement cost function shifts down to
A polluter with Mac 120-2E faces an emission tax rate of $ 40 / units . If its marginal abatement cost function shifts down to MAC = 100-2E due to adoption of a new technology , then what is the amount of cost - savings achieved by the polluter from adopting the new technology ? What is the maximum amount the polluter is likely to pay for the new technology ?
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