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The Two Firms Listed Below Have Five Different Technologies for Pollution

question 178

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. 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.Dewpoint would be willing to pay up to __________,__________,__________,and __________ for the right to discharge 1,2,3,and 4 tons of pollution. A)  $700;$500;$400;$376 B)  $50;$100;$200;$300 C)  $1000;$700;$500;$400 D)  $300;$200;$100;$50 E)  $300;$100;$50;$0
-Refer to the information above.Dewpoint would be willing to pay up to __________,__________,__________,and __________ for the right to discharge 1,2,3,and 4 tons of pollution.

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