Hello, I really need help solving these three questions. My TA cancelled office

Question

Hello, I really need help solving these three questions. My TA cancelled office hours and discussion and I am unsure of how to solve these problems. Thank you.

1. (26 points in total) The Govemment of Yokuku considers applying one of the following policies: a tax or a standard, in order to reduce pollution level from P to Po The government economist drew the following graph, representing the marginal abatement cost (MAC) to the polluters, the marginal damage to the society (MD), the optimal tax level (Tax level) and the socially optimal pollution level (Po). ENSCOO6 2012 HWS01 M0 Taxlevel Polution levet 0 Po Unreg Jlated Pollution ievel 1.1 (2 points) What is the total abatement cost to the polluter under the tax policy? a. A b. B C A+B d A+B+C 1.2 (2 points) What is the total abatement cost to the polluter under the standard policy? a A b B c A B d A+B+C 1.3 (2 points) What is the total damage cost under the tax policy? a A B. C A+B d A+B+C

Explanation / Answer

The correct option is (b). Total abatement cost = A . the correct option is(a) Total damage cost = A+B+C. option (d)

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