ΜΑ
CA
3) Below is the graph of the marginal abatement cost schedules of two firms, A
and B. Suppose that the two firms face a uniform emissions standard Eº.
Explain why this is not a cost-effective policy to control emissions. [2
points]
ΜΑ
CB
RESEC 262 Summer
ED
Problem
Emissions
Fig: 1