If Two Firms Pollute, and the Increase in Costs to Firm

question 243

Multiple Choice

If two firms pollute, and the increase in costs to firm A from decreasing pollution is equal to the decrease in costs to firm B from increasing pollution:

• A)the firms cannot benefit from trading the right to pollute.
• B)the firms can benefit by trading the right to pollute.
• C)while both firms can benefit from trading, there is no way for them to determine an agreeable price.
• D)both firms will stop polluting.

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Definitions:

Buffer Sentence

A neutral or positive opening sentence in a message that prepares the reader for the following information, which might be negative or controversial.

Routine Request

A standard or common inquiry or demand, often part of regular business or administrative procedures.

Being Specific

The quality of being clear and precise in communication or description, avoiding vagueness or ambiguity.

Emailing A Vendor

The act of sending an electronic message to a supplier or service provider for business-related purposes, such as inquiries or orders.