Author Question: Sulfur Dioxide Discharged (Tons)Firm AFirm ... (Read 62 times)

KimWrice · **on:** Jul 21, 2019

Sulfur Dioxide Discharged (Tons)	Firm A	Firm B
10	$8,000	$9,000
9	10,000	12,000
8	15,000	18,000
7	20,000	27,000
6	28,000	37,000

Table 16.3

Table 16.3 shows the production cost for two utilities at different levels of sulfur dioxide emissions. Assume that the government issued 8 marketable pollution permits to each firm. Suppose that Firm A has already sold a permit to Firm B. If Firm A contemplates selling a second permit to Firm B, what is Firm A's willingness to accept?
◦ $5,000
◦ $6,000
◦ $7,000
◦ $8,000

fwbard · **Reply #1 on:** Jul 21, 2019

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