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The Two Firms Listed Below Have Five Different Technologies for Pollution

question 169

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.Disunion Carbonated would be willing to pay __________,__________,__________,and __________ for the right to discharge 1,2,3,and 4 tons of pollution. A)  $110;$40;$25;$0 B)  $200;$90;$60;$25 C)  $25;$40;$110;$200 D)  $600;$400;$290;$250 E)  $400;$290;$250;$225
-Refer to the information above.Disunion Carbonated would be willing to pay __________,__________,__________,and __________ for the right to discharge 1,2,3,and 4 tons of pollution.


Definitions:

Information Power

The influence and control one gains from possessing knowledge or information that others do not have.

Data

Information collected and processed for analysis or used to inform decisions, often presented in numerical form or through various analytics.

News

Information about recent events or developments, typically disseminated via television, radio, internet, or print media.

Reward Power

The ability of a person to influence the behavior of others by offering them something desirable as a means of motivation.

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