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Table: Costs of Reducing Sulfur Dioxide Refer to the Table

Question 140

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Table: Costs of Reducing Sulfur Dioxide  Industry  Sulfur Dioxide Emissions (tons)   Cost of Reducing l Ton of Sulfu  Industry X 20$300 Industry Y 20$400\begin{array} { l c c } \hline \text { Industry } & \text { Sulfur Dioxide Emissions (tons) } & \text { Cost of Reducing l Ton of Sulfu } \\\hline \text { Industry X } & 20 & \$ 300 \\\text { Industry Y } & 20 & \$ 400 \\\hline\end{array} Refer to the table. Which statement is FALSE?


A) Social costs increase if Industry Y emits 40 tons of sulfur dioxide and Industry X emits zero tons.
B) Industry Y would agree to reduce its emissions by 1 ton if Industry X paid it $301.
C) If Industry X decreases emissions by 1 ton and Industry Y increases emissions by 1 ton, the cost of reducing pollution rises by $100.
D) Industry X would be willing to reduce its emissions by 5 tons if Industry Y paid it at least $1,500.

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