Multiple Choice
This diagram shows the costs incurred by firm A and firm B as they reduce the pollution from their factories.MACA represents the marginal abatement cost for firm A and MACB represents the marginal abatement cost for firm B.
-Refer to the diagram above.Suppose that the government imposes a tax of $200 per tonne of pollution per day.As a result,firm A will reduce pollution by _______ tonne(s) per day and firm B will reduce pollution by _________ tonne(s) per day.
A) 1;3
B) 3;1
C) 2;6
D) 6;2
E) 3;3
Correct Answer:

Verified
Correct Answer:
Verified
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