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

question 199

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. 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. The government gives each firm 20 pollution permits. Government officials are not sure whether to allow the firms to buy or sell the pollution permits to each other. What is the total cost of reducing pollution if firms are not allowed to buy and sell pollution permits from each other? What is the total cost of reducing pollution if the firms are allowed to buy and sell permits from each other?

• A)$3,000; $1,500
• B)$4,500; $3,500
• C)$4,500; $4,000
• D)$4,500; $2,500

Comprehend the conditions and time frames applicable to stop-payment orders.

Recognize the liability of parties involved in the certification and cashing of checks.

Identify the conditions under which a bank must recredit a customer's account for a forged check.

Differentiate between a certified check and a cashier's check regarding bank liability.

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Definitions:

Accounts Receivable

Funds that clients or customers owe to a company for products or services delivered but not yet compensated for.

Accounts Payable

Liabilities of a business that are due to suppliers and creditors within the short term, typically less than a year.

Treasury Stock

Shares that were issued and subsequently reacquired by the company, reducing the amount of outstanding stock on the open market.

Investing Activities

Financial activities related to the purchase and sale of long-term assets and investments, not including cash reserves.