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Imagine a firm's marginal abatement cost function with existing technologies is: MAC = 16 - 2E. If the firm adopts new pollution abatement technologies, its
Imagine a firm's marginal abatement cost function with existing technologies is: MAC = 16 - 2E. If the firm adopts new pollution abatement technologies, its marginal abatement cost function will be: MAC = 8 - E.If the government raises the tax on emissions from $2 to $3, the benefits of adopting the new technologies increase by $____.
Select one:
a.$1.75
b.$4.50.
c.$1.25.
d.$2.
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