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

question 11

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 general,all three firms face _____ costs of abatement,suggesting that the principle of _____ applies to pollution abatement.

• A)increasing marginal;low-hanging-fruit
• B)excessive;cost-benefit
• C)high;adverse selection
• D)decreasing average;economies of scale

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Definitions:

Disabled

A term describing people who have physical, mental, or developmental conditions that restrict their ability to engage in activities considered normal.

Biased View

A perspective that is unfairly prejudiced for or against someone or something.

Normal People

Individuals who conform to the prevailing norms and standards of society, often considered as average or typical members of a community.

Homosexuals

Individuals who are sexually attracted to people of the same sex.