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EC 238 EXAM MC QUESTIONS AND ANSWERS 2024-2025 VERIFIED REVIEW SOLUTION Under ________ the burden is on the ________ to make the right decision about what technology to use: A. technology-forcing standards; pollution control industry B. technology-based standards; polluting firms C. technology-based standards; public regulatory authority D. emission standards; public regulatory authority - ANS-✔✔C Suppose there are two firms in an industry with marginal abatement cost curves: MACA = 180 - 2EA MACB= 300 - 3EB If the government regulator has chosen a target level of total emissions to be 60 units per year _______ permits will need to be issued and they will trade for ________ per permit. A. 130; $72 B. 130; $156 C. 60; $72 D. 60; $156 - ANS-✔✔D For an industry with MAC = 240 - 8E and MDC = 2E, the socially efficient tax is equal to . A. $80 B. $40 C. $48 D. $24 - ANS-✔✔
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