Two Firms Can Choose from Five Different Technologies to Reduce

question 46

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.
$$\begin{array} { l c c c c c } & \mathrm { A } : & \mathrm { B } : & \mathrm { C } : & \mathrm { D } : & \mathrm { E } : \\& 4 \text { tons } & 3 \text { tons } & 2 \text { tons } & 1 \text { ton } & \text { no pollution } \\\text { Industrio } & \$ 350 & \$ 400 & \$ 500 & \$ 700 & \$ 1000 \\\text { Capitalista } & \$ 225 & \$ 250 & \$ 290 & \$ 400 & \$ 600\end{array}$$
Suppose the government decides to sell 6 permits and an environmental group is determined to only allow 5 tons of pollution to be emitted.To accomplish its goal,the environmental group should bid __________ for the permit.

• A)$301
• B)$201
• C)$111
• D)$51

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Definitions:

Taste Buds

Sensory organs located on the tongue and other parts of the mouth, which are responsible for detecting the five elements of taste perception: sweetness, sourness, saltiness, bitterness, and umami.

Pigments

Substances that impart color to other materials and are responsible for the colors seen in the natural world.

Color Vision

Ability of the eye to detect specific wavelengths of light; involves specialized cone cells that detect blue, green, and red wavelengths.

Cones

Photoreceptor cells in the retina of the eye responsible for color vision and visual acuity under bright light conditions.