Two Firms Can Choose from Five Different Technologies to Reduce

question 54

Multiple Choice

Two firms can choose from five different technologies to reduce their pollution: A,B,C,D andE.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.
$$\begin{array} { l c c c c c } & \mathrm { A } : & \mathrm { B } : & \mathrm { C } : & \mathrm { D } : & \mathrm { E } : \\& 4 \text { tons } & 3 \text { tons } & 2 \text { tons } & 1 \text { ton } & \text { no pollution } \\\text { Industrio } & \$ 350 & \$ 400 & \$ 500 & \$ 700 & \$ 1000 \\\text { Capitalista } & \$ 225 & \$ 250 & \$ 290 & \$ 400 & \$ 600\end{array}$$
The ultimate equilibrium price of six permits is __________ with Industrio buying __________ and Capitalista buying __________.

• A)$100;3;3
• B)$110;2;4
• C)$50;4;2
• D)$300;3;3

---

Definitions:

Forcing Conflict-Management

A strategy where one party goes to lengths to win a conflict at the expense of the other.

Person-Role Conflict

A situation where an individual's personal values, beliefs, or behaviors conflict with the expectations of their professional role.

Interrole Conflict

A psychological stress experienced by an individual due to competing demands or expectations from different roles they hold.

Ethical Standards

Principles that when followed, promote values such as trust, good behavior, fairness, and/or kindness.