When Firms in a Polluting Industry Have Different Costs for the Technology

question 43

Multiple Choice

When firms in a polluting industry have different costs for the technology to reduce pollution,which of the following is efficient?

• A) mandating equivalent reductions in pollution from all firms
• B) mandating that each firm reduce pollution up to the point at which the marginal cost of reducing pollution is equal to the total social benefit of the reductions for each firm
• C) mandating that each firm reduce pollution up to the point at which the marginal cost of reducing pollution for each firm is equal to the marginal social benefit of the reductions
• D) mandating that each firm reduce pollution up to the point at which the marginal benefit of doing so is zero

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Definitions:

Video Game Addiction

Compulsive or uncontrolled use of video games, which interferes with a person's daily life.

Leisure Time Activities

Activities undertaken for enjoyment and relaxation in one's free time, outside of work commitments.

Social Events

Gatherings organized for particular purposes, often involving entertainment, celebration, or communal activities.

Harmful Addiction

A detrimental dependence on a substance or activity that negatively impacts one's physical and mental health, relationships, and life.