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Author Question: Suppose two power plants pollute a river and both firms operate under a system of marketable ... (Read 75 times)

vicky

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on: Jul 21, 2019
Suppose two power plants pollute a river and both firms operate under a system of marketable pollution permits. If it costs Firm A $90 to reduce pollution by 800 units per day, and Firm B can reduce costs by $115 by increasing pollution by 800 units per day:
◦ both firms can benefit if Firm A trades the right to increase pollution by 800 units to Firm B for $100.
◦ the firms cannot gain by trading the right to pollute.
◦ both firms can benefit if Firm B trades the right to increase pollution by 800 units to Firm A for $120.
◦ both firms can benefit if Firm A trades the right to increase pollution by 800 units to Firm B for $70.
Microeconomics: Principles, Applications and Tools ¦ O'Sullivan, Sheffrin, Perez ¦ 8th Edition
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Marked as best answer by vicky on Jul 21, 2019

uniquea123

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Reply #1 on: Jul 21, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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vicky

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Reply 2 on: Jul 21, 2019
Excellent

hramirez205

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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