The Two Firms Listed Below Have Five Different Technologies for Pollution

question 57

Multiple Choice

The two firms listed below have five different technologies for pollution control to choose from: 1,2,3,4 and 5.The amount of pollution emitted and the cost of the technologies are shown in the table.In the absence of government oversight,the firms will pick technology 1 and emit 4 tons each.The government is considering two plans to reduce pollution: a 50% reduction by both firms or selling pollution permits.One permit entitles the owner to emit one ton of pollution.Without a permit,no pollution can be emitted.
-Refer to the information above.A government regulation that requires both firms to reduce pollution by 50% results in process _________ being adopted,with a private cost of ________.

• A) 1;$575
• B) 2;$650
• C) 3;$810
• D) 4;$1100
• E) 5;$1600

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Definitions:

Reversibility

The cognitive ability to understand that actions can be reversed, returning to the original state.

Mental Operation

Cognitive processes that involve manipulating information mentally, such as reasoning, problem-solving, and decision-making.

Conservation-of-Volume Task

A cognitive development task used in developmental psychology to assess a child's understanding that the quantity of a substance remains unchanged even when its appearance changes.

Decenter

The ability to consider multiple aspects of a situation or problem simultaneously, crucial in the development of logical thinking in children.