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

---

Definitions:

Racially Diverse Society

A society that includes individuals and groups from a wide range of racial and ethnic backgrounds, often advocating for equal respect and treatment.

Birth Rate

The statistical measure of the number of live births per 1,000 people in a given population over a specific period of time.

Puerto Ricans

Refers to the people originating from or living in Puerto Rico, a territory of the United States, who share a common cultural heritage and nationality.

United States

A country primarily located in North America, consisting of 50 states and a federal district, known for its significant impact on global affairs and culture.