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 allowed to trade
permits, what is the total cost of the pollution reduction?
A. $0
B. $60
C. $104
D. 110
Answer: C
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Extreme global poverty is defined as ________
A) income of less than one dollar a day B) foreign debt in excess of 100% of GDP C) one percent of U.S. income D) one-fourth of U.S. income
Evaluate the following statements: I. The slope of the demand curve is always equal to the elasticity of demand. II. Moving down along a downward-sloping, straight-line demand curve, the elasticity of demand falls
a. (I) and (II) are both true. b. (I) is true and (II) is false. c. (I) is false and (II) is true. d. (I) and (II) are both false.
Refer to Figure 18.1. With free trade, how many gloves are produced domestically in Duckland?
A. 100 B. 80 C. 60 D. 0
The marginal utility of leisure time appears to:
A. Be the same even for people with widely different incomes B. Be exempt from the law of diminishing marginal utility C. Increase as the quantity of available leisure time decreases D. Equal zero for successful business executives