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The graph shows the marginal benefit of pollution for firm A, which has a high cost of reducing pollution, and firm B, which has a
The graph shows the marginal benefit of pollution for firm A, which has a high cost of reducing pollution, and firm B, which has a lower cost of reducing pollution. A graph plots two Marginal Benefit curves with Quantity of pollution emissions (tons) along the horizontal axis and Marginal benefit to individual producer on the vertical axis. The Marginal benefit A curve starts at 1,600 dollars and with a negative slope ends at 8 tons of pollution. The points marked on the curve as Quantity of pollution emissions (tons) and Marginal benefit to individual producer are 4 tons, 800 dollars; 5 tons, 600 dollars. The Marginal benefit B curve starts at 1,000 dollars and with a negative slope ends at 8 tons of pollution. The points marked on the curve as Quantity of pollution emissions (tons) and Marginal benefit to individual producer are 3 tons, 600 dollars; 4 tons, 500 dollars. An environmental standard that required each firm to cut its pollution to 4 tons would result in marginal benefit of $_____ to firm A
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