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. Ignore the horizontal line at t. The optimal amount of pollution abatement for these two firms together is
A) QR for X + Qy for Y.
B) Qx for X + QR for Y.
C) QR for X + QR for Y.
D) Qx + Qy.
E) impossible to tell without the marginal benefit of abatement curve.
Correct Answer:
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