Refer to Figure 17- 4

question 18

Multiple Choice

Refer to Figure 17- 4.Ignore the horizontal line at t.Suppose the government requires each firm to reduce pollution by the same amount,QR.The result will be

• A)economically efficient because even though their marginal costs of abatement differ,the marginal cost for the last unit of abatement is equal.
• B)economically efficient because the maximum amount of pollution will be abated.
• C)fair and just because both firms are facing the same requirements.
• D)economically inefficient because Firm Y is then abating pollution at a higher marginal cost than Firm X.
• E)economically inefficient because Firm X is not producing as much pollution as Firm Y and therefore should not be faced with the same requirements.

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