Two Firms Can Choose from Five Different Technologies to Reduce

question 9

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.
$$\begin{array} { l c c c c c } & \mathrm { A } : & \mathrm { B } : & \mathrm { C } : & \mathrm { D } : & \mathrm { E } : \\& 4 \text { tons } & 3 \text { tons } & 2 \text { tons } & 1 \text { ton } & \text { no pollution } \\\text { Industrio } & \$ 350 & \$ 400 & \$ 500 & \$ 700 & \$ 1000 \\\text { Capitalista } & \$ 225 & \$ 250 & \$ 290 & \$ 400 & \$ 600\end{array}$$
Industrio would be willing to pay up to ___ for the right to discharge 1 ton of pollution,and Capitalista would be willing to pay up to __ for the right to discharge 1 ton of pollution.

• A)$50;$25
• B)$1000,$600
• C)$50,$50
• D)$300,$200

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Definitions:

Telescope

An optical instrument designed to make distant objects appear closer and more detailed by using lenses or mirrors, crucial for astronomical observations and discoveries.

Censorship

The suppression or prohibition of any parts of books, films, news, etc. that are considered obscene, politically unacceptable, or a threat to security.

Scientific Thought

Scientific thought is a systematic way of understanding the natural world based on observation, experimentation, and evidence, challenging existing knowledge and beliefs through rigorous questioning.

Vernacular Languages

The everyday spoken languages of ordinary people, as opposed to literary or official languages.