The Figure Below Shows the Marginal Pollution Abatement Cost Curves

Multiple Choice

The figure below shows the marginal pollution abatement cost curves of two firms- Company X and Company Y.

-Refer to the figure above. If the government sets a pollution cap of 30 tons of emission per firm, Company X will incur an abatement cost of ________.

A) $1,000
B) $1,500
C) $2,500
D) $3,000