Assume That the Price of a Tradable Emissions Permit for a Tonne

question 128

Multiple Choice

Assume that the price of a tradable emissions permit for a tonne of sulphur dioxide is $150.Which statement is INCORRECT?

• A) A firm that buys permits has an incentive to limit pollution to the point at which the marginal benefit of emissions is equal to $150.
• B) A firm that has more permits than it plans to use has an incentive to limit pollution to the point at which the marginal benefit of emissions is equal to $150.
• C) The opportunity cost of emitting a tonne of sulphur dioxide is $75 for all firms.
• D) The opportunity cost of emitting a tonne of sulphur dioxide is $150 for all firms.

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Internal and External

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Patient's Billing Record

A document or electronic file that contains details of the billing history and charges for medical services provided to a patient.

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A book or other collection of financial accounts of a particular type, typically used in accounting to record transactions.