The Diagram Below Shows the Marginal Cost of Pollution Abatement

question 57

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 Q_X and Firm Y abates Q_Y.
• B)each firm abates at Q_R.
• C)the emissions tax causes no change in firms' 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:

Temperament

The innate or genetically based aspect of an individual's personality, such as introversion or extroversion, that becomes evident in early childhood.

Thomas And Chess

Refers to the theory of temperament developed by psychologists Alexander Thomas and Stella Chess, which identifies nine temperament traits in infants.

Slow-To-Warm-Up

A temperament in which an individual is typically hesitant or cautious in new situations but gradually becomes more engaged over time.

Embryonic Stage

A period in prenatal development that lasts from the second to the eighth week after conception, where significant growth and differentiation of the embryo occurs.