« previous next »

Author Question: The above figure shows the marginal benefit from pollution for two firms. If each firm receives a ... (Read 382 times)

ghost!

  • Hero Member
  • *****
  • Posts: 560
on: Jun 18, 2019


The above figure shows the marginal benefit from pollution for two firms. If each firm receives a marketable permit to produce 25 units of pollution, which one of the following is most likely to happen?
◦ Firm B will sell some pollution rights to firm A.
◦ Firm A will produce all 50 units of pollution.
◦ Firm A will sell some pollution rights to firm B.
◦ Both firms will produce 25 units of pollution.
Microeconomics ¦ Perloff ¦ 8th Edition
Buy Test-Bank


dreamfighter72

  • Sr. Member
  • ****
  • Posts: 355
Reply #1 on: Jun 18, 2019
Firm B will sell some pollution rights to firm A.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question

ghost!

  • Hero Member
  • *****
  • Posts: 560
Reply #2 on: Jun 18, 2019
Thank you!


dreamfighter72

  • Sr. Member
  • ****
  • Posts: 355
Reply #3 on: Jun 18, 2019
Always glad to help...


pane00

  • Hero Member
  • *****
  • Posts: 579
Reply #4 on: Jun 18, 2019


The above figure shows the marginal benefit from pollution for two firms. If both firms receive a marketable permit to pollute 25 units of pollution each, how much will each firm pollute and how much will a permit for one unit of pollution be worth?


trog

  • Sr. Member
  • ****
  • Posts: 343
Reply #5 on: Jun 18, 2019
Firm B will sell permits to firm A until the marginal benefits are the same for both firms. Firm A will generate 37 tons of pollution and firm B will generate 13 tons of pollution. The market value of a permit will be $5.


« previous next »
 

Did you know?

Long-term mental and physical effects from substance abuse include: paranoia, psychosis, immune deficiencies, and organ damage.

Did you know?

Of the estimated 2 million heroin users in the United States, 600,000–800,000 are considered hardcore addicts. Heroin addiction is considered to be one of the hardest addictions to recover from.

Did you know?

There can actually be a 25-hour time difference between certain locations in the world. The International Date Line passes between the islands of Samoa and American Samoa. It is not a straight line, but "zig-zags" around various island chains. Therefore, Samoa and nearby islands have one date, while American Samoa and nearby islands are one day behind. Daylight saving time is used in some islands, but not in others—further shifting the hours out of sync with natural time.

Did you know?

The first oral chemotherapy drug for colon cancer was approved by FDA in 2001.

Did you know?

The horizontal fraction bar was introduced by the Arabs.

Hydrocephalus. The figure on the left is a child with the enlarged ventricles of hydrocephalus. The Hydrocephalus. The figure on the left is a child with the enlarged ventricles of hydrocephalus. The
Mechanical ventilation. The photograph shows a patient receiving breathing assistance by the use of Mechanical ventilation. The photograph shows a patient receiving breathing assistance by the use of
The “Old Man” from La Chapelle shows evidence of extensive tooth loss and bone resorption. The “Old Man” from La Chapelle shows evidence of extensive tooth loss and bone resorption.
That politics was always a rough business is shown in this cartoon, which shows Lincoln, assisted by That politics was always a rough business is shown in this cartoon, which shows Lincoln, assisted by
The illusory bands visible in this figure are often called Mach bands, although Mach used a ... The illusory bands visible in this figure are often called Mach bands, although Mach used a ...
Sources and Types of Air Pollution Sources and Types of Air Pollution
Video: Cellular defenses (natural killer cells, phagocyte types & process of phagocytosis)

For a complete list of videos, visit our video library