In the following figure,the first panel shows a market situation prior to regulation and the second panel shows the effects of regulation. Figure 12.2 In the figure,
D: Demand curve for automobiles
S₁: Supply curve of automobiles prior to regulation
S₂: Supply curve of automobiles after regulation
FG: Clean up cost per unit
-According to Figure 12.2,the total clean up cost after the regulation is:

Question

In the following figure,the first panel shows a market situation prior to regulation and the second panel shows the effects of regulation. Figure 12.2

In the figure,
D: Demand curve for automobiles
S₁: Supply curve of automobiles prior to regulation
S₂: Supply curve of automobiles after regulation
FG: Clean up cost per unit
-According to Figure 12.2,the total clean up cost after the regulation is:

Quizplus · Accepted Answer

The total cleanup cost after the regulation is represented by the area under the marginal cost curve from the origin to the regulated quantity, which is area 0FIQ₂.

In the Following Figure,the First Panel Shows a Market Situation