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The Diagram Below Shows the Marginal Cost of Pollution Abatement

Question 97

Multiple Choice

The diagram below shows the marginal cost of pollution abatement for two firms,Firm X and Firm Y. 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) Q<sub>R; </sub>Q<sub>R</sub> B) Q<sub>X; </sub>Q<sub>R</sub> C) Q<sub>X</sub>; Q<sub>Y</sub> D) 0; 0 E) Q<sub>R; </sub>Q<sub>Y</sub> 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

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