Refer to the Following Information to Answer the Following Questions

question 32

Multiple Choice

Refer to the following information to answer the following questions.
Two firms both emit a pollutant,and the government wants to reduce emissions of this pollutant.Each firm can choose to emit up to six units.As firms reduce emissions,there is a marginal cost per unit.This data is presented in the accompanying table.

-The government allocates three allowances to each firm,where each allowance allows one unit to be emitted.The optimal outcome in this case is for ________ to sell one permit to the other firm,and a price that will be agreeable to both is ________.

• A) Firm 1; $10
• B) Firm 1; $90
• C) Firm 1; $50
• D) Firm 2; $100
• E) Firm 2; $40

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Definitions:

Intimacy Versus Isolation

A stage in Erikson's theory of psychosocial development where young adults face the challenge of forming intimate relationships with others versus becoming isolated due to fear of rejection or commitment.

Radical Behaviorism

A foundational belief in behavior analysis that strictly focuses on observable behaviors and dismisses unobservable events as explanations for those behaviors.

Academic Success

The achievement of educational goals such as high grades, understanding material, and continuing progress in educational settings.

Bandura's Concept

Pertains to the theory of social learning by Albert Bandura, which suggests that individuals learn through observing, mimicking, and replicating the behaviors of others.