The Marginal Abatement Costs (MAC) for Stark and York Paper

Multiple Choice

The marginal abatement costs (MAC) for Stark and York Paper are MAC_s = 0.2e_s and MAC_Y = 0.25e_Y, where e_s and e_Y represent the amount of emissions cut by each company. The lowest cost approach to reducing 90 units of emission is for Stark to reduce its emissions by _____ units and York to reduce its emissions by _____ units.

A) 45; 45
B) 50; 40
C) 30; 60
D) 60; 30