Question 1
Refer to the information in Figure 16.5 below to answer the question(s) that follow.
Figure 16.5 shows the marginal benefits of emitting pollution for the only two chemical companies in an industry, Alpha Chemicals and Beta Chemicals. Before any tax on pollution emissions is imposed, each company views pollution as being free.
Refer to Figure 16.5. Before any tax on pollution is imposed, Beta Chemicals is emitting ________ tons of pollution.
◦ 25
◦ 50
◦ 75
◦ 100
Question 2
Refer to the information in Figure 16.5 below to answer the question(s) that follow.
Figure 16.5 shows the marginal benefits of emitting pollution for the only two chemical companies in an industry, Alpha Chemicals and Beta Chemicals. Before any tax on pollution emissions is imposed, each company views pollution as being free.
Refer to Figure 16.5. Before any tax on pollution is imposed, the total amount of pollution being emitted in this industry is ________ tons.
◦ 50
◦ 100
◦ 150
◦ 200