Refer to the data provided in Table 16.3 below to answer the following question(s).Table 16.3 shows the situation facing two firms, both of which are polluting. Assume that each firm emits 5 units of pollution.Table 16.3Firm AFirm AFirm AFirm BFirm BFirm BReduction of Pollution by Firm AMC of reducing pollution for Firm ATC of reducing pollution for Firm AReduction of Pollution by Firm BMC of reducing pollution for Firm BTC of reducing pollution for Firm B1$8 $81$16$16212202 24 40318383 32 72426644 401125361005 48160Refer to Table 16.3. Suppose the government wants to reduce the total amount of pollution from the current level of 10 to 4. To do this, the government caps each firm's emissions at 2 units and issues 2 permits to each firm. If firms are not allowed to trade
permits, what is the total cost of the pollution reduction?
A. $60
B. $110
C. $116
D. $260
Answer: B
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Use the data in the table below to answer the following question.PriceQuantity Demanded$201218171620142412301036840644448The price elasticity of demand (based on the midpoint formula) when price increases from $10 to $12 is
A. -1.37. B. -0.33. C. -1. D. -3.29.
The Keynesian view that demand could fall short of production is more likely to hold true if
a) wages and prices are fully flexible b) prices, but not wages, are full flexible c) wages and prices are not fully flexible d) wages, but not prices, are fully flexible
Foreign exchange rates refer to the
A. price of one nation's currency in terms of another nation's currency. B. difference between exports and imports of a particular nation with another. C. price at which purchases and sales of foreign goods take place. D. rate of exchange of goods and services between two trading nations.
Deposit insurance indirectly helped to create the savings and loan crisis in the United States because
A) depositors were not concerned with the types of investments made because they were insured, while at the same time savings and loans were aggressively investing in risky projects. B) depositors, believing that the government would not secure their deposits, were very concerned with the types of investments made at savings and loans. C) the government, without warning, eliminated deposit insurance for savings and loans, thereby causing a run on these institutions. D) depositors were not concerned with the types of investment made because savings and loans were making very conservative investments.