Suppose Two Firms Operate Under a System of Marketable Pollution

question 255

Multiple Choice

Suppose two firms operate under a system of marketable pollution permits. If it costs Firm A $25 to reduce pollution by 1,000 units per day, and Firm B can reduce costs by $35 by increasing pollution by 1,000 units per day

• A) the firms cannot gain by trading the right to pollute.
• B) both firms can benefit if Firm A trades the right to pollute 1,000 units to Firm B for $30.
• C) both firms can benefit if Firm A trades the right to pollute 1,000 units to Firm B for $40.
• D) both firms can benefit if Firm B trades the right to pollute 1,000 units to Firm A for $30.

Recognize the impact and causes of employment discrimination.

Describe the principle of economizing and its necessity.

Differentiate between the terms full employment and full production and their indicators.

Identify the economic reasons behind scarcity and the economic problem.

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Definitions:

Bolles

Robert C. Bolles was a psychologist known for his work on learning, avoidance behavior, and the theory of species-specific defense reactions (SSDRs).

Behavior Systems Approach

An approach in psychology that studies behavior as part of a functional system, including its adaptive purposes and evolutionary history.

Instinctive Behavior System

Innate, fixed patterns of behavior in animals that are typically automatic in response to specific stimuli.

Specific Function

Branches from the mathematical definition to specify a distinct purpose or role that a particular process, action, or object serves within a broader system.