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Refer Table 1 Above

Question 10

Multiple Choice

Refer Table 1 above. The table reveals the marginal abatement costs of three firms related to the quantity of emissions. Each firm is now emitting 10 tons/week, so total emissions are 30 tons/week. Suppose we wish to reduce total emissions by 50 percent, to 15 tons per week. What is the cost of this reduction via the equimarginal principle?


A) $33
B) $69
C) $72
D) $96

Correct Answer:

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