The figure below shows the marginal pollution abatement cost curves of two firms- Company X and Company Y.

-Refer to the figure above. Assume that firms are allowed to buy and sell permits. If the government allocates 30 pollution permits to each company and the price of each permit is $1,500, Company X will reduce its emission to ________.
A) 5 tons
B) 10 tons
C) 15 tons
D) 20 tons

Question

The figure below shows the marginal pollution abatement cost curves of two firms- Company X and Company Y.
 
-Refer to the figure above. Assume that firms are allowed to buy and sell permits. If the government allocates 30 pollution permits to each company and the price of each permit is $1,500, Company X will reduce its emission to ________.
A) 5 tons 
B) 10 tons 
C) 15 tons 
D) 20 tons

Quizplus · Accepted Answer

The Answer of The figure below shows the marginal pollution abatement cost curves of two firms- Company X and Company Y.
 
-Refer to the figure above. Assume that firms are allowed to buy and sell permits. If the government allocates 30 pollution permits to each company and the price of each permit is $1,500, Company X will reduce its emission to ________.
A) 5 tons 
B) 10 tons 
C) 15 tons 
D) 20 tons

The Figure Below Shows the Marginal Pollution Abatement Cost Curves