The Diagram Below Shows the Marginal Costs of Pollution Abatement

Multiple Choice

The diagram below shows the marginal costs of pollution abatement for two firms,Firm 1 and Firm 2. FIGURE 17-5
-Refer to Figure 17-5.Suppose each firm is currently abating pollution to the level .Which of the following statements is true?

A) This outcome is efficient because both firms are abating the same amount.
B) This outcome is not allocatively efficient because the marginal benefits and marginal costs of abatement are not equated.
C) This outcome is not allocatively efficient because less than 100% abatement is being achieved.
D) This outcome is not productively efficient because one firm is abating more pollution than the other.
E) This outcome is not productively efficient because the total cost of achieving this level of abatement is not minimized.