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

question 20

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: $\begin{array}{lllllr}\text { Tons of smoke emitted per day } & 4 & 3 & 2 & 1 & 0 \\\text { Total abatement cost, firm A } & 0 & \$ 14 & \$ 30 & \$ 50 & \$ 75 \\\text { Total abatement cost, firm B } & 0 & \$ 20 & \$ 45 & \$ 80 & \$ 120 \\\text { Total abatement cost, firm C } & 0 & \$ 25 & \$ 60 & \$ 100 & \$ 150\end{array}$
Suppose that the government imposes a tax of $21 per ton of pollution generated.Firm A will emit ____ tons;Firm B will emit ___ tons and Firm C will emit ___ tons.

• A) 0;2;3
• B) 1;3;4
• C) 3;4;4
• D) 1;2;4