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The graph below shows the marginal cost of abatement curve, which shows the extra cost to the firm of cleaning up an additional unit



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The graph below shows the marginal cost of abatement curve, which shows the extra cost to the firm of cleaning up an additional unit of pollution. When a pollution charge of $5 per unit emitted is imposed, how many units of pollution will the firm choose to clean up? Number Units When a pollution tax of $20 per unit emitted is imposed, how many units of pollution will the firm choose to clean up? Number Units 100 90 80 70 60 $ 50 40 5 8 10 30 Quantity (units of pollution cleaned) 40 MC of Abatement 50 60 70 80 90 100

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