1 firms are
A ) Si 50 Hi $26,5 iuction for two firros. if bog is the total cost of polltitioo they marginal co,t of pollution rec to reduce pollution by three units each, what 117) It:, table t this f.",) $125 18);1;,hhet,:-.1„..11.,le31-N.ive shows the marginal cost of pollution reduction for two
-1)) $90
firrns. 11 the 'EPA vvislw'' A) Firm -I should produce 4 fewer units of pollution, and Firm 2 sh"Id °Pir°c1-711ing pollution reduced by six units, what is the most cost-effective way A ce 2 fewer B) Firm I should produce 2 fewer units of pollution, 2 roduce 4 fewer units of pollution.. and Firm should p units of pollution. C) Each firm should produce 3 fewer units of pollution. Firm 2 should produce 6 fewer units of pollution. E) Firm 1 should produce 5 fewer units of pollution, and pollutions
C) $405
Price and cost per unit
P4 P2 P1
0
Figure 9-7
47)
I W)
Firm 2 should produce 1 less unit Of
ATC MC Demand
Quantity
MR Figure 9-7 shows the cost and demand curves for the Erickson Power Company. 19) Refer to Figure 9-7. How much is the deadweight loss at the profit-maximizing price A) 1/2*(P3.-P1)*(Q4-Q2) B) 1 /2*(P3-P2)*(Q3-Q2) C) 1/2*(P2.-P1)*((24-Q3) D) 1/2*(P4.-131)*(Q4-Q1) 20) Refer to Figure 9-7. How much is the deadweight loss at the normal profit price A) 1/2*(P3.-P1)*(Q4-Q2) B) 1/2*(P3-P2)*(Q3-Q2) C) 1/2*(P2.-P1)*(Q4-Q3) D) 1/2*(P4.-P1)*(Q4-Q1)
21) Refer to Figure 9-7. The profit-maximizing price is A) P./. B) P2• C) P3.
1)) P4.