When Firms in a Polluting Industry Have Different Costs for the Technology

Multiple Choice

When firms in a polluting industry have different costs for the technology to reduce pollution,which of the following is efficient?

A) mandating equivalent reductions in pollution from all firms
B) mandating that each firm reduce pollution up to the point at which the marginal cost of reducing pollution is equal to the total social benefit of the reductions for each firm
C) mandating that each firm reduce pollution up to the point at which the marginal cost of reducing pollution for each firm is equal to the marginal social benefit of the reductions
D) mandating that each firm reduce pollution up to the point at which the marginal benefit of doing so is zero