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. Suppose that Firm A has already sold a permit to Firm B. If Firm A contemplates selling a second permit to Firm B, what is Firm A's willingness to accept?
A. $5,000
B. $6,000
C. $7,000
D. $8,000
Answer: D
You might also like to view...
In the short run, an increase in export sales would cause output to ________ and the price level to ________
A) rise; rise B) rise; stay constant C) fall; stay constant D) fall; rise
Given the table above, the present value of lifetime resources ________ when the real interest rate rises to five percent
A) falls by $367 B) rises by $200 C) rises by $300 D) falls by $275
The emphasis upon export surpluses in mercantilist theory
(a) is also called the "beggar-thy-neighbor policy" and a "favorable" balance of trade. (b) was thought to be a good thing by business people because it meant that more money was circulating and more money meant higher prices and brisk trade. (c) was thought to be a good thing by governments because it created brisk trade which yielded higher tax revenues than did slack trade. (d) is characterized by all of the above.
What are the benefits of fair and efficient relationships with transactional customers?
a. Customers are more forgiving of the occasional service failure b. Good relations lead to repeat business c. Transactional customers may become strategic partners d. Increase complaints and damage reputation e. All of the above f. Only A, B, and C