The Diagram Below Shows the Marginal Costs of Pollution Abatement

question 73

Multiple Choice

The diagram below shows the marginal costs of pollution abatement for two firms,Firm 1 and Firm 2. FIGURE 17-5
-Refer to Figure 17-5.Suppose the government requires that each firm abate pollution to the level Q₃.The outcome would be efficient because

• A)the marginal costs of abatement are equated for the two firms.
• B)the maximum amount of pollution is being abated at the lowest cost.
• C)the marginal cost and marginal benefit of pollution abatement are equated.
• D)all of the above.
• E)none of the above; the outcome would be inefficient.

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Definitions:

Transformational Leadership

A style of leadership where the leader works with teams to identify needed change, creating a vision to guide the change through inspiration, and executing the change in tandem with committed members of the group.

Directing Efforts

The act of guiding or managing resources and activities towards achieving specific goals.

Rewards

Benefits, recognition, or compensation provided to individuals to recognize their efforts, achievements, or behaviors.

Vroom-Jago

A leadership model that focuses on decision-making processes and emphasizes the situational factors affecting the choice of leadership behaviors.