Economic analysis suggests that if the marginal cost of pollution abatement differs for two firms,the least cost pollution abatement strategy would require:
A)that both firms are limited to the same total pollution.
B)that the firms engage in different levels of pollution abatement but incur the same marginal cost of abatement.
C)that the firms engage in different levels of pollution abatement as long as they incur different marginal costs.
D)that the firms engage in different levels of pollution abatement but incur the same opportunity cost.

Question

Quizplus · Accepted Answer

The least cost pollution abatement strategy would require different levels of pollution abatement for each firm, but with the same marginal cost of abatement. This means that each firm should reduce pollution up to the point where the cost of reducing one more unit of pollution is the same for both firms. This ensures that the firms achieve the same level of pollution reduction at the least cost possible.

Economic Analysis Suggests That If the Marginal Cost of Pollution