Table 28.1Reduction in Emissions (in tons)MC to Reduce Emissions by Steel PlantMC to Reduce Emissions by Paper Plant1$400$20025002803600320Refer to Table 28.1. Suppose the government allows these two firms to trade pollution permits. What would be the price of a permit to emit the second ton of pollutants?
A. Less than $200.
B. Between $280 and $400.
C. More than $500.
D. Between $200 and $280.
Answer: B
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A) The origin B) A time-series graph C) A trend-line graph D) A cross-section graph E) A scatter plot
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a. The trade-off increases. b. The trade-off decreases. c. The trade-off disappears. d. The trade-off shifts.
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a. demand in the market for foreign-currency exchange to increase so the exchange rate increases. b. demand in the market for foreign-currency exchange to decrease so the exchange rate decreases. c. supply in the market for foreign-currency exchange to increase so the exchange rate decreases. d. supply in the market for foreign-currency exchange to decrease so the exchange rate increases.
If countries that export a primary product form an effective international cartel, then
A. the importing countries will be forced to reduce their import barriers. B. world efficiency will increase. C. the world supply of the primary product will expand substantially. D. output of the primary product will fall and its price will rise.