"'0' ""' "'"" \""""" "W """0""" "\"'\"' \"J I'""""" """"""\""J" ""J" ""'V ' " "' " """ ' " "' ' Dollars 0 o,o,oao,oo,o, 0 o.o,o,o.o,o,o, Abu'nmt Abmm FIGURE 175 73) Refer to Figure 175. Suppose Firm 1 and Firm 2 are each abating Q3 units of pollution. If the 73) government imposed an emissions tax of $40 per unit of emissions, A) Firm 2 would increase abatement beyond Q3 and Firm 1 would abate less than Q3. B) the level of pollution would be optimal. C) Firm 1 would increase abatement beyond Q3 and Firm 2 would abate less than Q3. D) each firm would abate to Q3. E) each firm would abate to the same level. 74) Refer to Figure 175. Suppose Firm 1 and Firm 2 are each abating Q3 units of pollution. If the 74) government imposed an emissions tax of $40 per unit of emissions, and this tax rate was known to equal the social marginal cost of pollution, then we can predict with confidence that A) the resulting level of pollution would be optimal. B) each firm would abate to the same level. C) Firm 2 would increase its emissions and this would not be socially optimal. D) Firm 2 would increase abatement beyond Q3 and Firm 1 would abate less than Q3. E) each firm would abate to Q3