Use the following to answer question:
Figure: Three Firms That Pollute
-(Figure: Three Firms that Pollute)Use Figure: Three Firms That Pollute.If each company is allowed to emit only 300 tons of pollution per day,which company will be MOST adversely affected?
A)firm A
B)firm B
C)firm C
D)They are equally affected.

Question

Use the following to answer question:
Figure: Three Firms That Pollute 
-(Figure: Three Firms that Pollute)Use Figure: Three Firms That Pollute.If each company is allowed to emit only 300 tons of pollution per day,which company will be MOST adversely affected?
A)firm A 
B)firm B 
C)firm C 
D)They are equally affected.

Quizplus · Accepted Answer

Firm A will be most adversely affected because it has the highest cost of reducing pollution, as indicated by its steepest marginal abatement cost curve. This means it would incur the highest cost to reduce emissions to the 300 tons per day limit.

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