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Figure: Environmental Standards versus Emissions Taxes
-(Figure: Environmental Standards versus Emissions Taxes)Use Figure: Environmental Standards versus Emissions Taxes.In the figure,if the goal is to limit the total emissions of the two firms,A and B,to 600 tonnes,the MOST efficient solution is an _____,and total pollution would be _____ tonnes.
A) environmental standard;300
B) emissions tax;600
C) environmental standard;600
D) emissions tax;200

Question

Use the following to answer question 
Figure: Environmental Standards versus Emissions Taxes 
-(Figure: Environmental Standards versus Emissions Taxes)Use Figure: Environmental Standards versus Emissions Taxes.In the figure,if the goal is to limit the total emissions of the two firms,A and B,to 600 tonnes,the MOST efficient solution is an _____,and total pollution would be _____ tonnes.
A) environmental standard;300 
B) emissions tax;600 
C) environmental standard;600 
D) emissions tax;200

Quizplus · Accepted Answer

An emissions tax is the most efficient solution to limit total emissions to 600 tonnes, as it provides firms with the flexibility to reduce emissions at the lowest cost.

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