When One Firm Sells Its Pollution Permit to Another Firm

question 450

Multiple Choice

When one firm sells its pollution permit to another firm,

• A)both firms benefit.
• B)the total amount of pollution remains the same.
• C)the total amount of pollution decreases.
• D)Both a and b are correct.

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Definitions:

Sigmund Freud

An Austrian neurologist and the founder of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Behaviorism

Behaviorism is a theory of learning based on the idea that all behaviors are acquired through conditioning, emphasizing observable behaviors over internal states.

Directly Observed

Pertains to an event or behavior watched or noted in person, without relying on indirect evidence or reports.

Psychoanalytic Theory

The idea that our thoughts and actions are influenced by specific unconscious forces.