Below are the marginal damages and marginal abatement cost functions linked to the production of a good where damages and costs are measured in dollars per tonne of emissions, and E is tonnes of emissions.

MD = 6E

MAC = 400 - 4E

Using the above information, complete the below statements by selecting the best answer.

At E= 0,total damages is equal to

Answer 1

Choose...

$0.

$20,000.

100 tonnes.

$20,000/tonne.

400 tonnes.

$50,000

$0/tonne.

600 tonnes

$30,000.

100.

$400/tonne.

At E= 0,marginal abatement costs is equal to

Answer 2

Choose...

$0.

$20,000.

100 tonnes.

$20,000/tonne.

400 tonnes.

$50,000

$0/tonne.

600 tonnes

$30,000.

100.

$400/tonne.

At E= 0, total abatement costs is equal to

Answer 3

Choose...

$0.

$20,000.

100 tonnes.

$20,000/tonne.

400 tonnes.

$50,000

$0/tonne.

600 tonnes

$30,000.

100.

$400/tonne.

The maximum level of emissions, EMAX, is equal to

Answer 4

Choose...

$0.

$20,000.

100 tonnes.

$20,000/tonne.

400 tonnes.

$50,000

$0/tonne.

600 tonnes

$30,000.

100.

$400/tonne.

At E= 0,marginal damages is equal to

Answer 5

Choose...

$0.

$20,000.

100 tonnes.

$20,000/tonne.

400 tonnes.

$50,000

$0/tonne.

600 tonnes

$30,000.

100.

$400/tonne.

At E= 0,the total social costs are equal to

Answer 6

Choose...

$0.

$20,000.

100 tonnes.

$20,000/tonne.

400 tonnes.

$50,000

$0/tonne.

600 tonnes

$30,000.

100.

$400/tonne.