Refer to the graph below for an industry. If the industry were purely competitive, the output quantity would be:

A seller's reservation price is generally equal to:

A. the seller's opportunity cost of producing an additional unit. B. the seller's marginal benefit from producing an additional unit. C. the buyer's reservation price. D. the market price.

Empirical evidence indicates that imposing taxes on polluting emissions by firms

A. has no effect on the amount of pollution emitted. B. does not give the government leeway to regulate more dangerous emissions differently than less dangerous emissions. C. does reduce the amount of pollution emitted. D. discourages firms from investing in new methods of pollution abatement.