$\text {Table \(28.1\)}$ Refer to Table 28

question 77

Multiple Choice

$\begin{array}{l}\begin{array}{ccc}\text { Reduction in Emissions}& \text {MC to Reduce Emissions} & \text {MC to Reduce Emissions }\\\text { (in tons) } & \text { by Steel Plant } & \text { by Paper Plant } \\\hline 1 & \$ 400 & \$ 200 \\2 & 500 & 280 \\3 & 600 & 320\end{array}\end{array}$
$\text {Table \(28.1\) }$ Refer to Table 28.1.Suppose the government allows these two firms to trade pollution permits.What would be the price of a permit to emit the second ton of pollutants?

• A)Less than $200.
• B)Between $200 and $280.
• C)Between $280 and $400.
• D)More than $500.

---

Definitions:

Units

The basic measure or quantity of something, used as a standard for expressing and comparing amounts.

Equilibrium Price

The market price at which the quantity of an item demanded by consumers equals the quantity supplied by producers, leading to market stability.

Equilibrium Quantity

The quantity of goods or services supplied is exactly equal to the quantity demanded at the market price.

Diagram

A graphical representation used to illustrate relationships between different elements or steps in a process.