A) Social costs increase if Industry Y emits 40 tons of sulfur dioxide and Industry X emits zero tons.
B) Industry Y would agree to reduce its emissions by 1 ton if Industry X paid it $301.
C) If Industry X decreases emissions by 1 ton and Industry Y increases emissions by 1 ton, the cost of reducing pollution rises by $100.
D) Industry X would be willing to reduce its emissions by 5 tons if Industry Y paid it at least $1,500.

Question

A) Social costs increase if Industry Y emits 40 tons of sulfur dioxide and Industry X emits zero tons. 
B) Industry Y would agree to reduce its emissions by 1 ton if Industry X paid it $301. 
C) If Industry X decreases emissions by 1 ton and Industry Y increases emissions by 1 ton, the cost of reducing pollution rises by $100. 
D) Industry X would be willing to reduce its emissions by 5 tons if Industry Y paid it at least $1,500.

Quizplus · Accepted Answer

This statement suggests that Industry Y is willing to reduce its emissions if compensated, and that Industry X has the potential to pay for these reductions. The other options do not provide evidence of a viable solution to reducing pollution.

A) Social Costs Increase If Industry Y Emits 40 Tons