Question: Imagine a firm with a marginal abatement cost (MAC) function equal to: MAC = 12 - 2E. The government introduces a per-unit tax on emissions

Imagine a firm with a marginal abatement cost (MAC) function equal to:

MAC = 12 - 2E.

The government introduces a per-unit tax on emissions equal to $4. For a profit-maximizing firm, total compliance costs (total abatement costs plus tax payment) are $____.

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