Refer to the figure above. A firm may expend more for abatement if there is an abatement tax policy versus an emissions standard. If this firm were to consider the difference between an emission tax of t* or an emissions standard of e*, what would the firm conclude is the monetary difference between the two programs?
Select one:
a. The emissions standard costs less than the taxation program by the amount of (a+b+c+d)
b. The emissions standard costs more than the taxation program by the amount of (a+b+c+d)
c. There is no monetary difference between the two programs
d. There is not enough information to determine the difference between the two programs
