Table 16.1Both firms depicted in Table 16.1 can benefit if Firm A sells its pollution permit allowing it to generate 1,000 gallons of wastewater to Firm B for:

A. a price between $12 and $15.
B. a price between $0 and $6.
C. a price greater than $20.
D. It is not possible for firms to benefit if Firm A sells a permit to Firm B.


Answer: A

Economics

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