The Two Firms Listed Below Have Five Different Technologies for Pollution

Multiple Choice

The two firms listed below have five different technologies for pollution control to choose from: 1,2,3,4 and 5.The amount of pollution emitted and the cost of the technologies are shown in the table.In the absence of government oversight,the firms will pick technology 1 and emit 4 tons each.The government is considering two plans to reduce pollution: a 50% reduction by both firms or selling pollution permits.One permit entitles the owner to emit one ton of pollution.Without a permit,no pollution can be emitted.
-Refer to the information above.A government regulation that requires both firms to reduce pollution by 50% results in process _________ being adopted,with a private cost of ________.

A) 1;$575
B) 2;$650
C) 3;$810
D) 4;$1100
E) 5;$1600