Suppose That There Are Three Power-Generating Plants,all of Which Generate

question 68

Multiple Choice

Suppose that there are three power-generating plants,all of which generate emissions.The table summarizes the cost of emission reduction for each firm given five different levels of pollution: $$\begin{array} { l l l l l r } \text { Tons of smoke emitted per day } & 4 & 3 & 2 & 1 & 0 \\\text { Total abatement cost, firm A } & 0 & \$ 14 & \$ 30 & \$ 50 & \$ 75 \\\text { Total abatement cost, firm B } & 0 & \$ 20 & \$ 45 & \$ 80 & \$ 120 \\\text { Total abatement cost, firm C } & 0 & \$ 25 & \$ 60 & \$ 100 & \$ 150\end{array}$$
In the absence of either government regulation or private negotiation,total expenditure on pollution abatement will be $__________,and total pollution will be __________.

• A)0;4 tons
• B)0;12 tons
• C)59;9 tons
• D)44;8 tons

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