a A polluter with MAC= 120-2E faces an emission tax rate of $40/unitsnswer
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A polluter with MAC= 120-2E faces an emission tax rate of $40/units. If its marginal abatement cost function shifts down to MAC'= 100-2E due to adoption of a new technology, then what is the amount of cost- savings achieved by the polluter from adopting the new technology? What is the maximum amount the polluter is likely to pay for the new technology?
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