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Home Q & A Board Other Fields Homework Help Business Economics
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pattytcakes pattytcakes
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A year ago

The diagram below shows the marginal costs of pollution abatement for two firms, Firm 1 and Firm 2.

Short description: Two abatements versus cost graphs are plotted, comparing two firms numbered Firm 1 and Firm 2. Long description: In both graphs, the horizontal axis denotes abatement, ranging from Q subscript 1 through 7 in increments of 1. The vertical axis denotes dollars ranging from 0 to 60 in increments of 10. Firm 1: an increasing line M C subscript 1 is drawn starting at (0, 10), with a point marked. The point is (Q subscript 3, 30). Firm 2: an increasing line M C subscript 2 is drawn starting at (0, 30). The point marked on the line is (Q subscript 3, 50).

FIGURE 17-5

Refer to Figure 17-5. If the government requires each firm to abate Q3 units of pollution, the social costs of this abatement



▸ could be reduced further if Firm 2 increased abatement and Firm 1 reduced its abatement by the same amount.

▸ could be reduced further if Firm 1 increased its abatement and Firm 2 reduced its abatement by the same amount.

▸ could be reduced further if each firm was required to abate more.

▸ would be minimized.

▸ could be reduced further if each firm was allowed to pollute more.
Textbook 
Microeconomics

Microeconomics


Edition: 17th
Author:
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BAGrinderBAGrinder
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A year ago
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pattytcakes Author
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A year ago
Thank you, thank you, thank you!
Shassta22
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Yesterday
Thanks
emilyas19
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2 hours ago
Correct Slight Smile TY
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