If Two Firms Have Different Abatement Costs, in a System

question 402

Multiple Choice

If two firms have different abatement costs, in a system of marketable pollution permits

• A) the firm with lower abatement costs will sell permits to the firm with higher abatement costs.
• B) the firm with lower abatement costs will purchase permits from the firm with higher abatement costs.
• C) no voluntary exchange that makes both firms better off is possible.
• D) voluntary exchange will occur, but it is impossible to determine which firm will be the seller and which will be the purchaser.

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Definitions:

Black Male Suffrage

The right of black men to vote, especially significant in the context of post-Civil War America with the passage of the 15th Amendment.

Reconstruction Act

Legislation passed after the Civil War aimed at rebuilding and integrating the Southern states back into the Union, including provisions for civil rights of the freed slaves.

Fourteenth Amendment

Added to the U.S. Constitution in 1868, guaranteeing equal protection under the laws to all citizens and crucial in extending civil rights and liberties.

Birthright Citizenship

The legal principle which grants citizenship to individuals born within a country's territories, regardless of their parents' nationality.