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Emissions (tons/month) Marginal Abatement Cost Total Abatement Cost Total Tax Bill at $100/ton Total Costs 10 0 0 1000 1000 9 15 15 900 915

Emissions (tons/month) Marginal Abatement Cost Total Abatement Cost Total Tax Bill at $100/ton Total Costs 10 0 0 1000 1000 9 15 15 900 915 8 30 45 800 845 7 50 95 700 795 6 70 165 600 765 5 100 265 500 765 4 120 385 400 785 3 150 535 300 835 2 185 720 200 920 1 230 950 100 1050 0 290 1240 0 1240 Refer to the Table above. The firm above faces an emissions charge of $100 per ton/month. If the firm chooses to emit 5 tons/month what is the firm's total cost? A. $265 B. $600 C. $765 D. $865

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