Suppose Jones' Company and Smith's Company Both Pollute

question 72

Multiple Choice

Suppose Jones' company and Smith's company both pollute. Under a system of marketable pollution permits, which of the following must be TRUE in order for Smith and Jones to benefit from trading the right to pollute?

• A) Smith and Jones must be able to reduce pollution at exactly the same cost.
• B) Smith and Jones must have different abatement costs.
• C) Smith and Jones must have a social conscience and must be devoted to pollution abatement.
• D) The government must direct Smith and Jones toward beneficial trades.

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Definitions:

Shear

A strain resulting from forces causing parts of a material to slide past each other in opposite directions.

Confining

Pertaining to geological layers or conditions that restrict the flow of groundwater due to lower permeability.

Foliation

The planar arrangement of textural or structural features in metamorphic rocks and certain igneous rocks.

Dominant Orientation

The primary direction in which a geological formation or feature is aligned.