The diagram below shows the marginal cost of pollution abatement for two firms,Firm X and Firm Y.
FIGURE 17-6
-Refer to Figure 17-6.Firms X and Y have an emissions tax of $t imposed on each unit of pollution they produce.Firm X will choose to abate pollution of ________ units and Firm Y will choose to abate pollution of ________ units.
A) QR; QR
B) QX; QR
C) QX; QY
D) 0; 0
E) QR; QY
Correct Answer:
Verified
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