Two Firms Can Choose from Five Different Technologies to Reduce

question 89

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.
$\begin{array}{lccccc} & \text { A: } & \text { B: } & \text { C: } & \text { D: } & \text { E: } \\& 4 \text { tons } & 3 \text { tons } & 2 \text { tons } & 1 \text { ton } & \text { no pollution } \\\text { Industrio } & \$ 350 & \$ 400 & \$ 500 & \$ 700 & \$ 1000 \\\text { Capitalista } & \$ 225 & \$ 250 & \$ 290 & \$ 400 & \$ 600\end{array}$
Suppose the government decides to sell 6 permits allowing a total of 6 tons of pollution.The government starts the bidding with an opening price of $30.What happens next?

• A) A total of five permits will be demanded,forcing the government to lower the price.
• B) Industrio will purchase all available permits at $30.
• C) Industrio will demand 3 permits and Capitalista will demand 3 permits.
• D) A total of seven permits will be demanded,forcing the government to raise the price.

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Definitions:

Supergroup

A high-level taxonomic rank in biological classification above the level of kingdom, used in some classifications for organisms that are genetically distant.

Single Flagellum

A structure used by some cells for movement, consisting of a long, whip-like appendage that drives the cell forward.

Amoebas

A group of protozoan single-celled organisms with the ability to change shape, known for their movement via pseudopodia.

Two Or More Flagella

The characteristic of an organism having multiple flagella, allowing for enhanced mobility and interaction with its environment.