Two Firms Can Choose from Five Different Technologies to Reduce

question 62

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.
$$\begin{array} { l c c c c c } & \mathrm { A } : & \mathrm { B } : & \mathrm { C } : & \mathrm { D } : & \mathrm { E } : \\& 4 \text { tons } & 3 \text { tons } & 2 \text { tons } & 1 \text { ton } & \text { no pollution } \\\text { Industrio } & \$ 350 & \$ 400 & \$ 500 & \$ 700 & \$ 1000 \\\text { Capitalista } & \$ 225 & \$ 250 & \$ 290 & \$ 400 & \$ 600\end{array}$$
A government regulation that requires both firms to reduce pollution by 50% results in process ___________ being adopted and the private costs are __________.

• A)A;$575
• B)B;$650
• C)C;$790
• D)D;$1100

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Definitions:

Endocrine System

A network of glands and organs in the body that produces, stores, and secretes hormones directly into the bloodstream to regulate the body's processes.

Pineal Gland

The pineal gland, a tiny gland located in the brain, secretes the hormone melatonin, which plays a crucial role in controlling the patterns of sleep and wakefulness.

Activity Levels

Refers to the degree of physical exertion or mental engagement in tasks or actions by an individual or group.

Endocrine Glands

Glands of the endocrine system that secrete hormones directly into the bloodstream to regulate various bodily functions.