Sulfur Dioxide Discharged (Tons)Firm AFirm B10$8,000$9,000910,00012,000815,00018,000720,00027,000628,00037,000Table 16.3Table 16.3 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 and that Firm A has sold one permit to Firm B. If Firm B wants to purchase a second permit to be able to discharge 10 tons of sulfur dioxide, what is Firm B's willingness to pay?
A. $2,000
B. $3,000
C. $5,000
D. $9,000
Answer: B
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One of the functions of the Federal Reserve System is the
a. issuance of federal government bonds b. collections of tax revenues from banks c. spending of federal funds on construction projects d. manufacturing of coins e. clearing of checks between banks located in different parts of the country
The upward-sloping part of the long-run average cost curve is explained by:
A. decreasing marginal productivity. B. indivisible setup costs. C. diseconomies of scale. D. output levels that exceed the minimum efficient level of production.
The average agricultural tariff in the U.S. is about
A) 3 percent. B) 5 percent. C) 9 percent. D) 15 percent.