Refer to the data provided in Table 16.4 below to answer the following question(s).Table 16.4 shows the situation facing two firms, both of which are polluting. Assume that each firm emits 5 units of pollution.Table 16.4Firm AFirm AFirm AFirm BFirm BFirm BReduction of Pollution by Firm AMC of reducing pollution for Firm ATC of reducing pollution for Firm AReduction of Pollution by Firm BMC of reducing pollution for Firm BTC of reducing pollution for Firm B1$2$21$16$162 6 82 24 4031220332 724204044011253070548160Refer to Table 16.4. Suppose the government wants to reduce the total amount of pollution from the current level of 10 to 4. To do this, the government caps each firm's emissions at 2 units and issues 2 permits to each firm. If firms are allowed to trade permits, how
many permits will be traded between the two firms?
A. B will buy two permits from A.
B. A will buy two permits from B.
C. B will buy one permit from A.
D. A will buy one permit from B.
Answer: A
Economics
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If real GDP and the velocity of circulation do not change and the quantity of money grows by 3 percent, then in the long the inflation rate is
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Monopolists can earn positive economic profits in the long run because they are more productively efficient than perfectly competitive firms
a. True b. False
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