Refer to the Data Provided in Table 16 -Refer to Table 16

question 184

Multiple Choice

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 16.3
$$\begin{array} { | c | c | c | c | c | c | } \hline \text { Firm A } & \text { Firm A } & \text { Firm A } & \text { Firm B } & \text { Firm B } & \text { Firm B } \\\hline \begin{array} { c } \text { Reduction of } \\\text { Pollution by } \\\text { Firm A }\end{array} & \begin{array} { c } M C \text { of } \\\text { reducing } \\\text { pollution for } \\\text { Firm A }\end{array} & \begin{array} { c } T C \text { of } \\\text { reducing } \\\text { pollution for } \\\text { Firm A }\end{array} & \begin{array} { c } \text { Reduction of } \\\text { Pollution by } \\\text { Firm B }\end{array} & \begin{array} { c } M C \text { of } \\\text { reducing } \\\text { pollution for } \\\text { Firm B }\end{array} & \begin{array} { c } T C \text { of } \\\text { reducing } \\\text { pollution for } \\\text { Firm B }\end{array} \\\hline 1 & \$ 8 & \$ 8 & 1 & \$ 16 & \$ 16 \\\hline 2 & 12 & 20 & 2 & 24 & 40 \\\hline 3 & 18 & 38 & 3 & 32 & 72 \\\hline 4 & 26 & 64 & 4 & 40 & 112 \\\hline 5 & 36 & 100 & 5 & 48 & 160 \\\hline\end{array}$$
-Refer 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

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Definitions:

Bowel Prep

A process of cleaning out the bowel, typically before a medical procedure like a colonoscopy, involving dietary restrictions and the use of laxatives.

Colonoscopy

A medical procedure using a thin, flexible tube with a camera to examine the interior lining of the colon and rectum for abnormalities.

Bowel Control

The ability to manage the timing of defecation, which can be affected by various medical conditions.

Physical Maturation

describes the natural process of bodily growth and development, typically culminating in adulthood and full biological functionality.