Firm a and Firm B Emit 300 Tons of Pollution

question 49

Multiple Choice

Firm A and Firm B emit 300 tons of pollution each and each have marketable permits that allow each to emit 100 tons of pollution.If it costs $5,000 for Firm A to eliminate 100 tons of pollution and it costs Firm B $6,000 to eliminate 100 tons of pollution,then

• A)Firm B sells its permits to Firm A for a price above $6,000.
• B)Firm A sells its permits to Firm B for a price below $6,000.
• C)Firm A sells its permits to Firm B for a price above $6,000.
• D)Firm B sells its permits to Firm A for a price below $6,000.
• E)Neither Firm A nor Firm B sells permits because neither has extra permits.

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Definitions:

Xiphoid Process

The small, cartilaginous projection at the lower end of the sternum, which can become ossified in adults.

Aortic Pulsations

The rhythmic expansion and contraction felt over the aorta, reflecting the heartbeat and blood flow.

Peristalsis

The coordinated, rhythmic contractions of smooth muscle that occur in the digestive tract to move food and waste products through the body.

Scaphoid Abdomen

A medical term describing a abdomen that appears sunken or hollowed out, often signifying undernutrition or certain diseases.