Use the following to answer question:
Figure: Environmental Standards versus Emissions Taxes
-(Figure: Environmental Standards versus Emissions Taxes) In the figure Environmental Standards versus Emissions Taxes, if the goal is to limit the total emissions of the two firms, A and B, to 600 tons, the most efficient solution is an _____, and total pollution would be _____ tons.
A) environmental standard; 300
B) emissions tax; 600
C) environmental standard; 600
D) emissions tax; 200

Question

Use the following to answer question:
Figure: Environmental Standards versus Emissions Taxes 
-(Figure: Environmental Standards versus Emissions Taxes) In the figure Environmental Standards versus Emissions Taxes, if the goal is to limit the total emissions of the two firms, A and B, to 600 tons, the most efficient solution is an _____, and total pollution would be _____ tons.
A) environmental standard; 300 
B) emissions tax; 600 
C) environmental standard; 600 
D) emissions tax; 200

Quizplus · Accepted Answer

An emissions tax is more efficient because it allows firms to reduce emissions at the lowest cost. The total pollution would be 600 tons, as the goal is to limit emissions to that amount.

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