Use the following to answer questions:
Figure: Three Firms That Pollute
-(Figure: Three Firms that Pollute) Look at the figure Three Firms That Pollute. If each company is allowed to emit only 300 tons of pollution per day, which company will be most adversely affected?
A) firm A
B) firm B
C) firm C
D) They are equally affected.

Question

Use the following to answer questions:
Figure: Three Firms That Pollute 
-(Figure: Three Firms that Pollute) Look at the figure Three Firms That Pollute. If each company is allowed to emit only 300 tons of pollution per day, which company will be most adversely affected?
A) firm A 
B) firm B 
C) firm C 
D) They are equally affected.

Quizplus · Accepted Answer

Firm A will be most adversely affected because it likely has the highest marginal cost of reducing pollution, making it more costly for them to reduce emissions to the allowed level compared to the other firms.

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