If It Costs Con Ed Approximately $20 Per Additional Ton

question 32

Multiple Choice

If it costs Con Ed approximately $20 per additional ton of air pollution abated, but it costs PG&E only $10 per additional ton of air pollution abated and a marketable pollution permit trades for $14 per ton,

• A)PG&E could gain by buying and Con Ed could gain by selling.
• B)society would gain if PG&E would sell and Con Ed would buy.
• C)both PG&E and Con Ed could gain by buying.
• D)both PG&E and Con Ed could gain by selling.

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Definitions:

Global Market Entry

Strategies and methods used by companies to start doing business in new international markets.

Potential Profit

The expected earnings a business can achieve from its operations, investment activities, and other financial ventures, assuming all conditions are favorable.

Direct Exporting

The sale of goods directly to a foreign market by the manufacturer or producer, without using an intermediary.

U.S. Airplane Manufacturer

A company based in the United States that specializes in designing, manufacturing, and selling aircraft.