Use the following to answer questions :
Figure: City with Two Polluters
-(Figure: City with Two Polluters)Use Figure: City with Two Polluters.If the government does not intervene in the pollution market,equilibrium will occur where firm A produces _____ tonnes of pollution and firm B produces _____ tonnes of pollution,for a total of _____ tonnes.
A) 2 000;2 000;4 000
B) 0;1 000;1 000
C) 1 000;0;1 000
D) 800;1 400;2 200

Question

Use the following to answer questions :
Figure: City with Two Polluters 
-(Figure: City with Two Polluters)Use Figure: City with Two Polluters.If the government does not intervene in the pollution market,equilibrium will occur where firm A produces _____ tonnes of pollution and firm B produces _____ tonnes of pollution,for a total of _____ tonnes.
A) 2 000;2 000;4 000 
B) 0;1 000;1 000 
C) 1 000;0;1 000 
D) 800;1 400;2 200

Quizplus · Accepted Answer

Without government intervention, both firms will produce at their maximum capacity, leading to a total of 4,000 tonnes of pollution.

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