When One Firm Sells Its Pollution Permit to Another Firm

question 67

Multiple Choice

When one firm sells its pollution permit to another firm:

• A)both firms benefit
• B)the total amount of pollution remains the same
• C)social welfare is enhanced
• D)all of the above occur

---

Definitions:

Uncertainty Avoidance

The degree to which a society tolerates risk and uncertainty.

Individualism

A theory in society that prioritizes individual freedom over the control of groups or the government.

Cultural Tightness

Describes the degree to which a culture holds tight norms and a low tolerance for deviant behavior, affecting how flexible or strict societal norms are.

Cultural Looseness

Refers to the degree to which cultural norms and behaviors in a society are not strictly enforced, allowing for more variability and flexibility in individual behavior.