If the Government Creates a System of Pollution Permits, Firms

question 383

Multiple Choice

If the government creates a system of pollution permits, firms with low marginal costs of reducing pollution will

• A) buy permits from other firms.
• B) sell permits to other firms.
• C) hold on to the permits they have been issued and not attempt to buy more.
• D) not be issued permits.

---

Definitions:

Simplify

The process of making an expression or equation easier to work with, by reducing it to its most basic form.

Absolute Value

The distance of a number from zero on the real number line, disregarding whether it is positive or negative.

Simplify

Simplify refers to the process of making an equation, expression, or problem simpler to understand or solve, usually by reducing complexity.

Radical

A symbol (√) representing the square root or nth root of a number or expression.