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

question 70

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 $5,

• 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.
• E)Firm B should abate more and Firm A should abate less.