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Two Firms,A and B,are Legally Required to Reduce Their Toxic

Question 5

Multiple Choice

Two firms,A and B,are legally required to reduce their toxic emissions.If Firm A's marginal cost of abatement is $5 and Firm B's marginal cost of abatement is $5,


A) their joint total cost of abatement is at a maximum.
B) their joint total cost of abatement is at a minimum.
C) Firm A should abate more and Firm B should abate less.
D) Firm B should abate more and Firm A should abate less.
E) the socially optimal joint level of abatement is not being achieved.

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