[Answer] what is the highest price that a firm would be willing to pay for one marketable pollution permit?

Answer: an amount equal to the purchasing firm's marginal abatement cost

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what is the highest price that a firm would be willing to pay for one marketable pollution permit? what is the highest price that a firm would be willing to pay for one marketable pollution permit ? an amount equal to the purchasing firm's marginal abatement cost. compare a direct pollution tax on automobile travel with a tax on gasoline. the gasoline tax is: The social cost of production is the private cost of production plus the external cost generated by production. What is the highest prove that a firm would be willing to pay for one marketable pollution permit? an amount equal to the purchasing firm's marginal abatement cost. Tue Jul 21 2020 · The reason is that firm 1's MAC is higher and so it is more willing than firm 2 to pay for permits rather than incur its somewhat higher abatement costs. This is how the permit scheme achieves efficiency; the cost of buying a permit or the opportunity cost of not selling a permit generates the same kind of decentralized incentives as an ... Pollution Permits - Economics Help Pollution Permits - Economics Help Pollution Permits - Economics Help Pollution Permits - Economics Help What is the highest price that a firm would be willing to pay for one marketable pollution permit ? A) an amount equal to the purchasing firm ’s marginal abatement cost B) an amount equal to the social benefit of pollution reduction C) an amount determined by supply and demand in the market D) an amount equal to the selling firm ’s marginal ... Wed Jan 05 2011 · For example under cap-and-trade a firm that finds it very expensive to reduce pollution by one unit c...

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