Sulfur Dioxide Discharged (Tons)Firm AFirm B10$10,000$12,000911,00017,000813,00022,000716,00026,000620,00033,000
Table 9.8 shows the production cost for two utilities at different levels of sulfur dioxide emissions. Assume that the government issued 8 marketable pollution permits to each firm. If Firm A contemplates selling one permit to Firm B, what is Firm A's willingness to accept?
A. $2,000
B. $3,000
C. $4,000
D. $5,000
Answer: B
Economics
You might also like to view...
A decrease in government spending will cause a(n) ________.
A. decrease in aggregate demand B. increase in aggregate demand C. decrease in the quantity of real output demanded D. increase in the quantity of real output demanded
Economics
What is the difference between nominal and effective tax rates? What creates the distinction?
What will be an ideal response?
Economics
In the aggregate expenditures model, which of the following variables is assumed to be independent of real GDP?
A) Investment B) Profit C) Saving D) Consumption
Economics
The driving force in the balance-sheet channel of monetary policy mechanism is which of the following?
A. Bank net worth B. Timing C. Information D. Asset diversity
Economics