Use the Following Table

question 2

Multiple Choice

Use the following table. Suppose Plant A and Plant B are currently emitting 4 tons of pollution each. Government requires each plant to reduce emissions by two tons and issues two one-ton marketable pollution permits to each plant. Will any permits be traded?

• A) Yes, Plant A would be willing to buy one permit from Plant B.
• B) Yes, Plant B would be willing to buy one permit from Plant A.
• C) Yes, Plant B would be willing to buy two permits from Plant A.
• D) Both firms' costs of control are so high that no trading will occur.

---

Definitions:

Net Operating Income

A financial metric representing the amount of profit generated from a company's ordinary operations, excluding expenses from interest and taxes.

Tenant-Days

A metric used in property management to describe the cumulative number of days all tenants occupy a space within a defined period.

Static Budget

A financial plan that does not change over the period it covers, even if actual figures deviate from the planned amounts.

Patient-Visits

A metric in healthcare indicating the number of times patients visit a healthcare provider or facility.