FIGURE 17-5 Refer to Figure 17-5. Suppose the govermment requires that each firm abate pollution to the level Q3. The outcome would be efficient because OA the macimum amount of pollution is being abated at the lowest cost OB. the marginal cost and marginal benefit of pollution abatement are equated. OC. the marginal costs of abatement are equated for the two firms. OD. all of the above. OE none of the above; the outcome would be inefficient.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Dollars
Firm 2
60
60
MC
50
MC
S0
40
40
30
30
20
20
10
10
Q1 0: Os Q, Q, Q. Q,
Q, Q2 Q Q. Qs Q.
Ahatemene
Ahstement
Transcribed Image Text:Dollars Firm 2 60 60 MC 50 MC S0 40 40 30 30 20 20 10 10 Q1 0: Os Q, Q, Q. Q, Q, Q2 Q Q. Qs Q. Ahatemene Ahstement
Abatement
Ahatement
FIGURE 17-5
Refer to Figure 17-5. Suppose the govermment requires that each firm abate pollution to the level Q3. The outcome would be efficient because
OA the macimum amount of pollution is being abated at the lowest cost
OB the marginal cost and marginal benefit of pollution abaternent are equated.
OC. the marginal costs of abaternent are equated for the two firms.
OD. all of the above.
O E none of the above; the outcome would be inefficient.
Click to select your answer
O Search for anything
Transcribed Image Text:Abatement Ahatement FIGURE 17-5 Refer to Figure 17-5. Suppose the govermment requires that each firm abate pollution to the level Q3. The outcome would be efficient because OA the macimum amount of pollution is being abated at the lowest cost OB the marginal cost and marginal benefit of pollution abaternent are equated. OC. the marginal costs of abaternent are equated for the two firms. OD. all of the above. O E none of the above; the outcome would be inefficient. Click to select your answer O Search for anything
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