Question: Question In the graph below, the solid green line represents the marginal cost of reducing particle emissions ( measured in pounds ) for a firm.
Question
In the graph below, the solid green line represents the marginal cost of reducing particle emissions measured in pounds for a firm. The dashed line represents a newly imposed pollution charge of $ for every pound of pollution emitted.
Suppose the firm is currently emitting more than pounds of particle emissions and must decide how to respond to the pollution charge. Assume that particle emissions can only be reduced in multiples of eight pounds.
By how many pounds will the firm choose to reduce its total particle emissions?
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