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

question 142

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, how many permits will be traded between the two firms?

• A) A will buy two permits from B.
• B) B will buy two permits from A.
• C) A will buy one permit from B.
• D) B will buy one permit from A.

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Definitions:

Proteolytic Processing

The enzymatic cleavage of protein precursors to form their active or mature states, a critical process in cellular regulation.

Chemical Modification

The alteration of a chemical compound's structure to change its properties or activity, often used in pharmaceuticals and materials science.

Protein Degradation

The process by which proteins are broken down into their amino acid components, often regulated by cellular mechanisms for metabolism and homeostasis.

CAP

Catabolite Activator Protein, a regulatory protein in bacteria that helps facilitate the transcription of genes in response to the presence of certain sugars.