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Imagine a firm's marginal abatement cost function with existing technologies is: MAC = 36 - 6E. If the firm adopts new pollution abatement technologies, its
Imagine a firm's marginal abatement cost function with existing technologies is: MAC = 36 - 6E. If the firm adopts new pollution abatement technologies, its marginal abatement cost function will be: MAC = 18 - 3E.If the government raises the tax on emissions from $6 to $12, the benefits of adopting the new technologies increase by $____.
Select one:
a.$9.
b.$5.
c.$7.
d.$8.
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