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:

Leadership Level

The different tiers or stages of leadership within an organization, typically characterized by varying responsibilities, skills, and influence.

Layoffs

The act of terminating employees, often for reasons unrelated to personal performance, such as economic downturns or company restructuring.

Ethical

Pertaining to or dealing with morals or the principles of morality; adhering to accepted standards of conduct.

Socially Responsible

Pertaining to individuals or organizations that act in ways beneficial to society, often by engaging in ethical, environmentally friendly, and community-focused activities.