Two Firms Can Choose from Five Different Technologies to Reduce

question 75

Multiple Choice

Two firms can choose from five different technologies to reduce their pollution: A,B,C,D and E.The amount of pollution emitted by each technology and the cost of the technologies are shown in the table.Both firms have adopted technology A and currently emit 4 tons apiece.The government is considering two plans to reduce pollution: a 50% reduction by both firms or selling pollution permits.One permit entitles the owner to emit one ton of pollution.Without a permit,no pollution can be emitted.
$$\begin{array} { l c c c c c } & \mathrm { A } : & \mathrm { B } : & \mathrm { C } : & \mathrm { D } : & \mathrm { E } : \\& 4 \text { tons } & 3 \text { tons } & 2 \text { tons } & 1 \text { ton } & \text { no pollution } \\\text { Industrio } & \$ 350 & \$ 400 & \$ 500 & \$ 700 & \$ 1000 \\\text { Capitalista } & \$ 225 & \$ 250 & \$ 290 & \$ 400 & \$ 600\end{array}$$
If the government decided to use permits instead of regulation,in order to reduce pollution by 50% it would need to sell _____ permits.

• A)4
• B)2
• C)3
• D)5

Understand the concept of external/internal validity in studies and experiments.

Differentiate between observational studies and experiments.

Identify and understand the role of confounding variables in research.

Recognize the use and importance of proxy variables in research studies.

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Definitions:

Public Solicitation

The act of seeking for services, goods, or attention from the general public in a public space, often through advertising, begging, or campaigning.

Sexually Transmitted Disease

Infectious diseases primarily transmitted through sexual contact.

Prostitution

The practice of engaging in sexual activity in exchange for payment.

Professional Ideology

A set of beliefs or principles that guides the ethical and professional conduct of individuals within a certain occupation.