Question: 1 Table 3 The following table shows the marginal costs for each of four arms (A, B, C, and D) to eliminate units of pollution from their production processes. For example, for Firm A to eliminate one unit of pollution, it would cost $54, and for Firm A to eliminate a second unit of pollution it would cost an additional $67. Refer to Table 3. If the
Economics: Public Economics
Question: 1
Table 3 The following table shows the marginal costs for each of four arms (A, B, C, and D) to eliminate units of pollution from their production processes. For example, for Firm A to eliminate one unit of pollution, it would cost $54, and for Firm A to eliminate a second unit of pollution it would cost an additional $67.
Refer to Table 3. If the government charged a fee of $90 per unit of pollution, how many units of pollution would the arms eliminate altogether?
Guess: 11
Question 2:
Refer to Figure 5 (Graph 4). Which graph illustrates a pollution permit program?
a. the left graph
b. both graphs
c. the right graph
d. neither graph
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