Refer to the Following Information to Answer the Questions -If Emissions of This Pollutant Are Not Regulated, Then the Firms
Refer to the following information to answer the questions.
Two firms both emit a pollutant, and the government wants to reduce emissions of this pollutant. Each firm can choose to emit up to six units. As firms reduce emissions, there is a marginal cost per unit. This data is presented in the accompanying table.
-If emissions of this pollutant are not regulated, then the total emissions from the two firms equal:
A) 12 units.
B) 6 units.
C) 0 units.
D) 10 units.
E) 9 units.
Correct Answer:
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