Suppose that there are two firms, each generating three tons of SO2. Suppose also that the government has set a target abatement level of two tons. Under a policy of uniform abatement with permits, each firm would receive:
A. two non-transferable pollution permits.
B. two pollution permits which they could sell to each other.
C. one pollution permit with a value equal to that firm's cost of abating one ton of SO2.
D. one pollution permit with a value equal to the market price for a pollution permit.
Answer: A
Economics
You might also like to view...
Refer to the table above. What is the marginal rent cost if the firm decides to choose factory Very Close over factory Close?
A) -$100 B) -$200 C) $100 D) $200
Economics
An average tax rate is calculated as
A) total taxable income × taxes paid. B) taxes paid ÷ total taxable income. C) (total taxable income - taxes paid) ÷ taxable income. D) total taxable income ÷ taxes paid.
Economics