Title: The diagram below shows the marginal costs of pollution abatement for two firms, Firm 1 and Firm ...
Post by: gisellerol on Oct 16, 2022
The diagram below shows the marginal costs of pollution abatement for two firms, Firm 1 and Firm 2.
FIGURE 17-5
Refer to Figure 17-5. Suppose each firm is currently abating pollution to the level Q3. Which of the following statements is true?
▸ This outcome is not allocatively efficient because less than 100% abatement is being achieved.
▸ This outcome is not productively efficient because the total cost of achieving this level of abatement is not minimized.
▸ This outcome is not productively efficient because one firm is abating more pollution than the other.
▸ This outcome is efficient because both firms are abating the same amount.
▸ This outcome is not allocatively efficient because the marginal benefits and marginal costs of abatement are not equated.
Title: The diagram below shows the marginal costs of pollution abatement for two firms, Firm 1 and Firm ...
Post by: coconut122 on Oct 16, 2022
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