Table 9.7 -Table 9.7 Shows the Production Cost for Two Utilities at Utilities

question 291

Multiple Choice

Table 9.7
-Table 9.7 shows the production cost for two utilities at different levels of sulfur dioxide emissions. Assume that the government issued 8 marketable pollution permits to each firm. If the two firms agree to swap one permit and split the difference between the willingness to pay and willingness to accept, what is the price of a permit?

• A) $4,500
• B) $5,500
• C) $7,250
• D) $9,750

---

Definitions:

Inner Speech

The process of talking to oneself mentally, which plays a role in thinking and self-regulation.

Vygotsky's Concept

The theory by Lev Vygotsky that social interaction plays a fundamental role in the development of cognition, emphasizing the cultural context of learning.

Zone of Proximal Development

A concept in developmental psychology referring to the difference between what a learner can do without help and what they can achieve with guidance and encouragement from a skilled partner.

Vygotsky's Zone

Refers to Vygotsky's concept of the Zone of Proximal Development, a theory that suggests learning occurs in the area between what a child can do independently and what they can do with guidance.