Question: If emission fees are used to control pollution, how does a firm decide on the amount of pollution to abate? a) Equate the fee

If emission fees are used to control pollution, how does a firm

If emission fees are used to control pollution, how does a firm decide on the amount of pollution to abate? a) Equate the fee to the marginal cost of abatement. b) Equate the fee to the marginal extemal cost. c) Equate marginal external cost to the marginal cost of abatement. d) Equate the fee to the marginal cost of production.

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