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ia45122 ia45122
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2 years ago
Consider a coal-fired electric-power plant that is operating under a system of tradable pollution permits (and the firm currently owns permits). If its marginal cost of pollution abatement is $100 per unit and the price of the permit is $150 per unit, this firm will

▸ buy more permits and abate more pollution.

▸ sell permits and abate more pollution.

▸ not abate at all.

▸ buy more permits and abate less pollution.

▸ not buy any permits, since that would push up its costs.
Textbook 
Microeconomics

Microeconomics


Edition: 17th
Author:
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TanjaGTanjaG
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2 years ago
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ia45122 Author
wrote...

2 years ago
Thank you, thank you, thank you!
decibul
wrote...

Yesterday
Good timing, thanks!
dri
wrote...

2 hours ago
Helped a lot
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