In the case of an emissions fee,

0 votes
    the firm will continue to produce and emit pollution at the same levels as before the emission fee was introduced but will work to develop technologies to reduce emissions and fees in the future.
     firms will reduce emissions to zero in order to avoid unnecessary fees completely.
     the firm will pay as high a fee as its cash flow allows in order not to disrupt market sales.
     firms will reduce emissions until the government emissions fee equals its marginal cost of abatement.
asked Jun 2, 2013 in Economics by anonymous
    

1 Answer

0 votes
firms will reduce emissions until the government emissions fee equals its marginal cost of abatement.
answered Jun 3, 2013 by Xyz ~Expert~ (3,650 points)



...