Figure 5B -Refer to Figure 5B. Assume That the Initial Effluent Tax

Figure 5B

-Refer to Figure 5B. Assume that the initial effluent tax in the amount of tk, or $20 per unit of waste discharged and that the MCC curve represents the nature of the pollution control technology of this firm. Which of the following is correct?

A) At $20 per unit of waste, the total expenditure by the firm at 150 units of waste is
$3000.
B) At $20 per unit of waste, the total expenditure by the firm at 150 units of waste is
$8000.
C) At $20 per unit of waste, the total expenditure by the firm at 150 units of waste is
$1500.
D) At $20 per unit of waste, the total expenditure by the firm at 0 units of waste is
$3000.
E) At $20 per unit of waste, the total expenditure by the firm at 100 units of waste is
$3000.