Factory A can reduce emissions at a cost of 250 per ton. Factory ...

[ereecah]

Factory A can reduce emissions at a cost of 250 per ton. Factory B can reduce emissions at a cost of 400 per ton. In a system in which the government issues transferable pollution right at a price of 200 per ton:
 a. Factory A can profit from selling its pollution rights to Factory B.
  b. Both firms have an incentive to buy pollution rights.
 c. Factory B can profit from selling its pollution rights to Factory A.
  d. Both firms have an incentive to sell pollution rights.

Question 2

When restrictions alter the pattern of international trade, the _____ benefit and the _____ suffer(s).
 a. domestic consumers; domestic producers
  b. domestic consumers; government
  c. domestic producers; domestic consumers
  d. foreign producers; domestic producers
  e. foreign producers; domestic consumers

[robbielu01]

Answer to Question 1

b

Answer to Question 2

c

[ereecah]

Excellent

[diana chang]

TYSM