Some Countries Limit or Reduce the Overall Amount of Pollution

question 87

Multiple Choice

Some countries limit or reduce the overall amount of pollution by letting companies negotiate,buy,sell,and trade the "right" to pollute among themselves.Such a system is based on

• A) emissions trading.
• B) ecocapitalism.
• C) pollution permits.
• D) barter bucks.
• E) pollute-for-profit.

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Definitions:

Production Function

A mathematical relation that expresses the relationship between inputs used in production and the output produced.

Minimizing Unit Costs

The process of reducing the cost per unit of production in order to achieve greater efficiency and profitability.

Price Ratio

The proportional relationship between the prices of two goods, indicating how many units of one good can be exchanged for one unit of another good.

Short-Run Total Cost Function

A mathematical representation of the total cost involved in the production of goods or services, considering all expenses over the short term.