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

question 89

Multiple Choice

Refer to the data provided in Table 16.2 below to answer the following question(s) .
Table 16.2 shows the situation facing two firms, both of which are polluting. Assume that each firm emits 5 units of pollution.
Table 16.2
$$\begin{array} { | c | c | c | c | c | c | } \hline \text { Firm A } & \text { Firm A } & \text { Firm A } & \text { Firm B } & \text { Firm B } & \text { Firm B } \\\hline \begin{array} { c } \text { Reduction of } \\\text { Pollution by } \\\text { Firm A }\end{array} & \begin{array} { c } M C \text { of } \\\text { reducing } \\\text { pollution for } \\\text { Firm A }\end{array} & \begin{array} { c } T C \text { of } \\\text { reducing } \\\text { pollution for } \\\text { Firm A }\end{array} & \begin{array} { c } \text { Reduction of } \\\text { Pollution by } \\\text { Firm B }\end{array} & \begin{array} { c } M C \text { of } \\\text { reducing } \\\text { pollution for } \\\text { Firm B }\end{array} & \begin{array} { c } T C \text { of } \\\text { reducing } \\\text { pollution for } \\\text { Firm B }\end{array} \\\hline 1 & \$ 1 & \$ 1 & 1 & \$ 8 & \$ 8 \\\hline 2 & 3 & 4 & 2 & 12 & 20 \\\hline 3 & 6 & 10 & 3 & 16 & 36 \\\hline 4 & 10 & 20 & 4 & 20 & 56 \\\hline 5 & 15 & 35 & 5 & 24 & 80 \\\hline\end{array}$$
-Refer to Table 16.2. 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 not allowed to trade permits, what is the total cost of the pollution reduction?

• A) $24
• B) $46
• C) $76
• D) $115

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Definitions:

Physical Functioning

The ability to perform activities of daily living, including ambulation, feeding, dressing, and engaging in recreational activities.

Adolescent Egocentrism

A characteristic of adolescent thinking leading to an over-focus on self and a feeling of being unique and invulnerable.

Personal Fable

A belief held by adolescents that they are unique, invincible, and not subject to the same rules that govern others' behaviors and experiences.

Myth of Invincibility

A belief, especially among young people, that they are not susceptible to harm or consequences faced by others.