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Figure: City with Two Polluters
-(Figure: City with Two Polluters) Look at the figure City with Two Polluters. If the government does not intervene in the pollution market, equilibrium will occur where firm A produces _____ tons and firm B produces _____ tons of pollution, for a total of _____ tons.
A) 2,000; 2,000; 4,000
B) 0; 1,000; 1,000
C) 1,000; 0; 1,000
D) 800; 1,400; 2,200

Question

Use the following to answer questions:
Figure: City with Two Polluters 
-(Figure: City with Two Polluters) Look at the figure City with Two Polluters. If the government does not intervene in the pollution market, equilibrium will occur where firm A produces _____ tons and firm B produces _____ tons of pollution, for a total of _____ tons.
A) 2,000; 2,000; 4,000 
B) 0; 1,000; 1,000 
C) 1,000; 0; 1,000 
D) 800; 1,400; 2,200

Quizplus · Accepted Answer

In the absence of government intervention, both firms will produce pollution at their maximum levels, leading to an equilibrium where firm A produces 2,000 tons and firm B produces 2,000 tons, totaling 4,000 tons.

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