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.

---

Definitions:

Cultural Mismatch

The situation that arises when individuals' cultural backgrounds do not align with the cultural context in which they find themselves.

First Generation College Students

Individuals who are the first in their family to attend a college or university, often facing unique social, financial, and academic challenges.

Vocational Programs

Educational courses or paths designed to equip individuals with the skills and knowledge required for a specific job or career.

High School

An educational institution providing secondary education, typically for students aged between 14 and 18.