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:

C++ Program

A sequence of instructions written in the C++ programming language that performs a specified task when executed.

Standard Input

A predefined stream in many programming languages that typically reads input from the keyboard or main input device.

C

This language is built for various computing needs, offering procedural coding techniques, enabling the use of structured programming, variable scope determined lexically, and allowing for recursion.

Standard Input

A predefined stream in programming through which data is received from the user or another input source.