Two Firms, a and B, Each Currently Dump 50 Tons

question 371

Multiple Choice

Two firms, A and B, each currently dump 50 tons of chemicals into the local river. The government has decided to reduce the pollution and from now on will require a pollution permit for each ton of pollution dumped into the river. The government will sell 40 pollution permits for $75 each. It costs Firm A $100 for each ton of pollution that it eliminates before it reaches the river, and it costs Firm B $50 for each ton of pollution that it eliminates before it reaches the river. Neither firm produces any less output, but they both conform to the law. It is likely that between the cost of permits and the cost of additional pollution abatement,

• A)Firm B will spend $3,500.
• B)Firm A will spend $4,000.
• C)Firm A will spend $4,500.
• D)Firm B will spend $3,000.

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Definitions:

Network Centralization

Network centralization refers to the degree to which a network's connections are concentrated around one or a few nodes, indicating the central points of control or communication.

Member Satisfaction

The level of contentment or fulfilment experienced by individuals within a group or organization, often considered a key factor in group dynamics and outcomes.

Group Performance

Group performance encompasses the outcome or output produced by a group, measured against set goals or standards.

SYMLOG Theory

A theoretical framework in social psychology that stands for SYstem for the Multiple Level Observation of Groups, focusing on the observation and analysis of the behavior of individuals within groups in three dimensions: dominance/submission, friendliness/unfriendliness, and instrumentally controlled/emotionally expressive.