Two Firms,A and B,are Legally Required to Reduce Their Toxic

question 11

Multiple Choice

Two firms,A and B,are legally required to reduce their toxic emissions.If Firm A's marginal cost of abatement is $5 and Firm B's marginal cost of abatement is $3,

• A)their joint total cost of abatement is at a minimum.
• B)their joint total cost of abatement is at a maximum.
• C)the socially optimal joint level of abatement is not being achieved.
• D)Firm A should abate more and Firm B should abate less in order to reduce total abatement costs.
• E)Firm B should abate more and Firm A should abate less in order to reduce total abatement costs.

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Definitions:

Trial Marriage Cohabitation

A living arrangement in which a couple lives together in a marriage-like setting without being legally married, often to assess compatibility.

Premarital Cohabitation

The practice of living together and having a sexual relationship without being married.

Substitute Marriage Cohabitation

A living arrangement in which a couple shares a household and life together but is not legally married.

Dating Cohabitation

The state of living together and being involved in an intimate relationship without being married.