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If the Marginal Cost of Pollution Abatement Is Smaller for Large

Question 145

Multiple Choice

If the marginal cost of pollution abatement is smaller for large firms than it is for small firms, then it is efficient for:


A) small firms to reduce pollution by more than large firms.
B) small firms and large firms to reduce pollution by a fixed proportion.
C) small firms and large firms to increase pollution by a fixed proportion.
D) large firms to reduce pollution by more than small firms.

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