Under a System of Transferable Pollution Rights, Which of the Following

question 183

Multiple Choice

Under a system of transferable pollution rights, which of the following firms is most likely to purchase a $500 permit to emit a ton of pollutants in to the atmosphere?

• A)​a non-polluting firm
• B)​a polluting firm that can reduce emissions at a cost of $500 per ton
• C)​a polluting firm that can reduce emissions at a cost of $200 per ton
• D)​a polluting firm that can reduce emissions at a cost of $600 per ton

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Definitions:

Solenoid

A coil of wire designed to create a magnetic field when an electric current is passed through it, often used to control valves or relays.

Relay

An electrically operated device that mechanically switches electric circuits.

Final Control Element

A device that directly manipulates a process variable to achieve a desired change, such as a valve or a motor.

Proportional Controller

A type of feedback controller that generates an output signal by multiplying the error between a desired setpoint and a measured process variable by a constant.