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:

Attitude-Behavior Link

The relationship between one's attitudes (feelings and beliefs) and one's actions, where attitudes are predictors of behavior under certain conditions.

Implicit Attitudes

Unconscious beliefs or feelings towards people, objects, or concepts, which can influence behavior and decision-making.

Directly Relevant Attitudes

Attitudes that are specifically related to and directly influence an individual's thoughts, feelings, and behaviour in a specific context.

Fear

An unpleasant emotional state triggered by the perception of danger, real or imagined.