To determine the amount of total costs faced by a polluter or the society from a given amount of emission reduction, we compute

A. the area under MD graph.

B. the area under MAC graph.

C. the area between MD and MAC graph.

D. the height of MD graph.

If the damages from any unit of emissions is the same, then it implies that

A. MAC graph is horizontal.

B. MAC graph is upward sloping.

C. MD graph is horizontal.

D. MAC graph is vertical.

10) A polluter, under a liability law, reduces its emission level because the law

A. tells it pay a pollution fee for each unit of emissions it produces.

B. tells it pay to anyone who suffers from pollution damages.

C. limits how much emissions it can produce.

D. tells it to reduce all of its emissions.