Refer to the Data Provided in Table 16 -Refer to Table 16

question 91

Multiple Choice

Refer to the data provided in Table 16.3 below to answer the following questions.
Table 16.3 shows the situation facing two firms, both of which are polluting. Assume that each firm emits 5 units of pollution.
Table 16.3
$$\begin{array} { | c | c | c | c | c | c | } \hline \text { Firm A } & \text { Firm A } & \text { Firm A } & \text { Firm B } & \text { Firm B } & \text { Firm B } \\\hline \begin{array} { c } \text { Reduction of } \\\text { Pollution by } \\\text { Firm A }\end{array} & \begin{array} { c } M C \text { of } \\\text { reducing } \\\text { pollution for } \\\text { Firm A }\end{array} & \begin{array} { c } \text { TC of } \\\text { reducing } \\\text { pollution for } \\\text { Firm A }\end{array} & \begin{array} { c } \text { Reduction of } \\\text { Pollution by } \\\text { Firm B }\end{array} & \begin{array} { c } M C \text { of } \\\text { reducing } \\\text { pollution for } \\\text { Firm B }\end{array} & \begin{array} { c } T C \text { of } \\\text { reducing } \\\text { pollution for } \\\text { Firm B }\end{array} \\\hline 1 & \$ 4 & \$ 4 & 1 & \$ 8 & \$ 8 \\\hline 2 & 6 & 10 & 2 & 12 & 20 \\\hline 3 & 9 & 19 & 3 & 16 & 36 \\\hline 4 & 13 & 32 & 4 & 20 & 56 \\\hline 5 & 18 & 50 & 5 & 24 & 80 \\\hline\end{array}$$
-Refer to Table 16.3. Suppose the government wants to reduce the total amount of pollution from the current level of 10 to 4. To do this, the government caps each firm's emissions at 2 units and issues 2 permits to each firm. If firms are allowed to trade permits, what is the total cost of the pollution reduction?

• A) $0
• B) $30
• C) $52
• D) $55

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Definitions:

Sexual Orientation

An individual's pattern of emotional, romantic, or sexual attraction to others, which can include heterosexuality, homosexuality, bisexuality, among others.

Tolerant of Homosexuals

Showing acceptance and openness towards individuals who identify as homosexual, supporting their rights and acknowledging their sexual orientation without prejudice.

Attitude

A psychological tendency expressed by evaluating a particular entity with some degree of favor or disfavor, shaping how individuals think, feel, and behave.

Homosexuals

Individuals who are emotionally, romantically, or sexually attracted to members of the same sex.