Two Firms, a and B, Each Currently Emit 100 Tons

question 456

Multiple Choice

Two firms, A and B, each currently emit 100 tons of chemicals into the air. The government has decided to reduce the pollution and from now on will require a pollution permit for each ton of pollution emitted into the air. The government gives each firm 40 pollution permits, which it can either use or sell to the other firm. It costs Firm A $200 for each ton of pollution that it eliminates before it is emitted into the air, and it costs Firm B $100 for each ton of pollution that it eliminates before it is emitted into the air. It is likely that

• A)Firm A will buy all of Firm B's pollution permits. Each one will cost between $100 and $200.
• B)Firm B will buy all of Firm A's pollution permits. Each one will cost between $100 and $200.
• C)Both firms will use their own pollution permits.
• D)Firm A will buy some of Firm B's pollution permits. Each one will cost less than $100.

Understand the fundamentals of Mowrer's two-factor theory of punishment and avoidance.

Comprehend the matching law and its application in behavior analysis.

Distinguish between different theories of reinforcement and choice behavior, including the maximizing law and blisspoint theory.

Analyze the role of environmental cues and anticipatory responses in avoidance learning.

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Definitions:

Comparable Worth

The concept that people should receive equal pay for work of equal value, regardless of the job title or position.

Graphic Rating Scale

A type of performance assessment that uses a checklist of traits or characteristics to evaluate performance.

Behaviourally Anchored Rating Scale

A performance appraisal method that uses specific examples of behavior to evaluate the performance of employees instead of relying on more subjective measures.

Bona Fide

Means genuine, real, or without the intention of deceit; often used to describe authentic documents or sincere intentions.