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Title: The diagram below shows the marginal cost of pollution abatement for two firms, Firm X and Firm ...
Post by: qwertybio on Oct 16, 2022

The diagram below shows the marginal cost of pollution abatement for two firms, Firm X and Firm Y.

Short description: Two graphs plot pollution abatement against dollars per unit. Long description: In each graph, the horizontal axis represents pollution abatement and the vertical axis represents dollars per unit. The first graph shows a concave up increasing curve representing MC subscript X that passes through the points, (Q subscript R, C subscript X) and (Q subscript X, above C subscript X). The second graph shows a concave up increasing curve representing MC subscript Y that passes through the points, (Q subscript R, C subscript Y) and (Q subscript Y, above C subscript Y).

FIGURE 17-4

Refer to Figure 17-4. Suppose Firms X and Y are each abating QR units of pollution. From this point, if Firm X reduces pollution by one unit and Firm Y increases pollution by one unit, then



▸ total pollution remains the same, but the total cost of abatement falls.

▸ the total cost of abatement remains the same, but pollution increases.

▸ total pollution remains the same, but the total cost of abatement increases.

▸ the total costs of abatement and the amount of pollution do not change.

▸ the total cost of abatement remains the same, but pollution falls.

Title: The diagram below shows the marginal cost of pollution abatement for two firms, Firm X and Firm ...
Post by: mooltipas on Oct 16, 2022
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