Two Firms Can Choose from Five Different Technologies to Reduce

question 87

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 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:

Voluntary Behaviours

Actions that are under conscious control, such as walking, talking, or writing.

Immune System

A complex network of cells, tissues, and organs that work together to defend the body against attacks by foreign invaders such as bacteria, viruses, and cancer cells.

Immunosuppression

The reduction of the efficacy of the immune system's response, naturally or through medical intervention.

Conditioned Response

A conditioned reaction to a once neutral stimulus that has been paired with an unconditioned stimulus.