Exhibit 30-3 -Refer to Exhibit 30-3. Suppose That Firms A, B, and Firms

Multiple Choice

Exhibit 30-3

-Refer to Exhibit 30-3. Suppose that Firms A, B, and C are the only polluters in the state and that each emits 4 tons of pollution into the atmosphere. To cut the level of pollution in half, the government mandates system whereby each firm must reduce its pollution level by one-half. The total cost of complying with the mandate is

A) $433.
B) $1,540.
C) $2,750.
D) $8,570.
E) $11,650.