Two Firms Can Choose from Five Different Technologies to Reduce

question 118

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.
$\begin{array}{lccccc} & \text { A: } & \text { B: } & \text { C: } & \text { D: } & \text { E: } \\& 4 \text { tons } & 3 \text { tons } & 2 \text { tons } & 1 \text { ton } & \text { no pollution } \\\text { Industrio } & \$ 350 & \$ 400 & \$ 500 & \$ 700 & \$ 1000 \\\text { Capitalista } & \$ 225 & \$ 250 & \$ 290 & \$ 400 & \$ 600\end{array}$
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:

Percentage

is a proportion or share expressed as a fraction of 100, used to describe relative quantities or to compare parts of a whole.

Healthiest

Describes the optimal state of physical and mental well-being, often associated with lifestyle choices that contribute to longevity and quality of life.

Happiest

Experiencing or characterized by the highest degree of pleasure, satisfaction, or contentment.

Widow

A woman whose spouse has died and who has not remarried.