Refer to the Information in Figure 16

question 25

Multiple Choice

Refer to the information in Figure 16.5 below to answer the question(s) that follow. Figure 16.5
Figure 16.5 shows the marginal benefits of emitting pollution for the only two chemical companies in an industry, Alpha Chemicals and Beta Chemicals. Before any tax on pollution emissions is imposed, each company views pollution as being free.
-Refer to Figure 16.5. Suppose that instead of a tax, the government uses standards to achieve the emission reductions, requiring that each company cut its original emissions in half rather than allowing each company to choose emissions based on their costs. Compared to the outcome under the tax, this common standard would result in

• A) Alpha gaining more than Beta loses.
• B) Alpha gaining less than Beta loses.
• C) Beta gaining more than Alpha loses.
• D) Beta gaining less than Alpha loses.

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Definitions:

Epiphysis

The expanded end of a long bone.

Medullary Cavity

The central cavity of bone shafts where red and yellow bone marrow is stored.

Diaphysis

The shaft or central part of a long bone.

Endosteum

The thin vascular membrane of connective tissue that lines the inner surface of bony tissue, involved in bone growth and healing.