(Table: Pollution Permits) the Table Shows the Current Pollution Levels

question 95

Multiple Choice

(Table: Pollution Permits) The table shows the current pollution levels for each firm and the cost of abatement on a per ton of glop basis. If the government does NOT know the cost of abatement for each firm, then the total cost of cleaning up 80 tons of glop using pollution permits would be
$\begin{array}{|l|c|c|}\hline \text { Firms } & \text { Current Pollution Levels } & \begin{array}{c}\text { Abatement Cost } \\\text { (per ton) }\end{array} \\\hline \text { Shetland } & 70 & \$ 20.00 \\\hline \text { Dominion } & 80 & \$ 30.00 \\\hline \text { Greener Tech } & 50 & \$ 10.00 \\\hline\end{array}$

• A) $1,100.
• B) $2,400.
• C) $3,500.
• D) $1,000.

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Definitions:

Demand Volatility

Refers to the degree of unpredictability or fluctuations in consumer demand for products or services over time.

Agricultural Products

Goods produced through farming and cultivation of the land.

Farm Household

A household that is involved in agricultural activities, often residing on a farm where both living and farming activities take place.

Net Farm Income

The total income from agricultural activities after operating expenses and depreciation are subtracted.