Suppose Two Firms Operate Under a System of Marketable Pollution

question 215

Multiple Choice

Suppose two firms operate under a system of marketable pollution permits. If it costs firm A $25 to reduce pollution by 1,000 units per day, and firm B can reduce costs by $35 by increasing pollution by 1,000 units per day:

• A)the firms cannot gain by trading the right to pollute.
• B)both firms can benefit if firm A trades the right to pollute 1,000 units to firm B for $30.
• C)both firms can benefit if firm A trades the right to pollute 1,000 units to firm B for $40.
• D)both firms can benefit if firm B trades the right to pollute 1,000 units to firm A for $30.

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Definitions:

Followers Impact Leaders

The concept that the behavior, attitudes, and feedback from followers can influence and shape a leader's actions and decisions.

Dysfunctional Personal Characteristics

Traits or behaviors in individuals that negatively impact their performance or relationships in a workplace or social setting.

Destructive Behaviors

Actions that negatively impact oneself or others, often hindering progress or causing harm.

Toxic Leaders

Toxic Leaders are individuals in leadership positions who exhibit behavior that is destructive, unethical, and harmful to their followers and the organization, often leading to a toxic work environment.