The diagram below shows the marginal cost of pollution abatement for two firms, Firm X and Firm Y.
FIGURE 17- 4
-Refer to Figure 17- 4. Firms X and Y have an emissions tax of $t imposed on each unit of pollution they produce. Firm X will choose to abate pollution of units and Firm Y will choose to abate pollution of units.
A) QR; QY
B) QX; QR
C) QR; QR
D) 0; 0
E) QX; QY
Correct Answer:
Verified
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