Suppose that there are three power-generating plants,all of which generate emissions.The table summarizes the cost of emission reduction for each firm given five different levels of pollution: $\begin{array}{lllllr}
\text { Tons of smoke emitted per day } & 4 & 3 & 2 & 1 & 0 \
\text { Total abatement cost, firm A } & 0 & \$ 14 & \$ 30 & \$ 50 & \$ 75 \
\text { Total abatement cost, firm B } & 0 & \$ 20 & \$ 45 & \$ 80 & \$ 120 \
\text { Total abatement cost, firm C } & 0 & \$ 25 & \$ 60 & \$ 100 & \$ 150
\end{array}$
In the absence of either government regulation or private negotiation,total expenditure on pollution abatement will be $__________,and total pollution will be __________.

Question

Quizplus · Accepted Answer

In the absence of regulation or negotiation, firms will not spend on abatement, resulting in zero expenditure and maximum pollution, which is 12 tons (4 tons per firm).

Suppose That There Are Three Power-Generating Plants,all of Which Generate