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Imagine a firm's marginal abatement cost function with existing technologies is: MAC = 8 - E. If the firm adopts new pollution abatement technologies, its
Imagine a firm's marginal abatement cost function with existing technologies is: MAC = 8 - E. If the firm adopts new pollution abatement technologies, its marginal abatement cost function will be: MAC = 4 - 0.5E.If the government raises the tax on emissions from $1 to $3, the benefits of adopting the new technologies increase by $____.
Select one:
a.$8.
b.$10.
c.$2.
d.$4.
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