The Diagram Below Shows the Marginal Cost of Pollution Abatement

question 89

Multiple Choice

The diagram below shows the marginal cost of pollution abatement for two firms,Firm X and Firm Y.
FIGURE 17-6
-Refer to Figure 17-6.There is an emissions tax of $ t per unit of pollution.The resulting amount of pollution abatement is socially optimal if

• A)Firm X abates QX and Firm Y abates QY.
• B)each firm abates at QR.
• C)the emissions tax causes no change in firmsʹ polluting activity.
• D)the emissions tax is equal to the marginal social cost of pollution.
• E)each firm pays the maximum amount of tax.

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Definitions:

Nonsense Syllables

A set of letters that do not form a known word, used in psychological experiments to study memory and learning processes by eliminating association effects.

Proactive Interference

The phenomenon where older memories interfere with the recall of newer memories.

Retroactive Interference

A phenomenon where learning new information negatively impacts the recall of previously learned information.

Nonsense Syllables

Meaningless sets of two consonants with a vowel sandwiched in between, used in memory and learning experiments.