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:

Checklist

A written or electronic list of items to be noted, checked off, or remembered.

Cognitive Therapist

A cognitive therapist focuses on identifying and correcting distorted thinking patterns, inaccurate beliefs, and negative thought processes that contribute to emotional and behavioral issues.

Neurotransmitters

Chemical messengers that transmit signals across a chemical synapse, from one neuron (nerve cell) to another 'target' neuron, muscle cell, or gland cell.

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