Factory a Can Reduce Emissions at a Cost of $150

question 246

Multiple Choice

Factory A can reduce emissions at a cost of $150 per ton. Factory B can reduce emissions at a cost of $115 per ton. In a system in which the government issues transferable pollution right at a price of $200 per ton:

• A)​Factory A can profit from selling its pollution rights to Factory B.
• B)​Both firms have an incentive to buy pollution rights.
• C)​Factory B can profit from selling its pollution rights to Factory A.
• D)​Both firms have an incentive to sell pollution rights.

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Definitions:

Positive Affect

Pleasant emotions such as joy, happiness, and interest.

Negative Affect

Negative emotions such as anger, guilt, and sadness.

Extrovert

A personality trait characterized by energy and enjoyment found in social interaction and external stimulation.

Introvert

A personality type that tends to find energy in solitary activities rather than being energized by social interactions.