The two firms listed below have five different technologies for pollution control to choose from: 1,2,3,4 and 5.The amount of pollution emitted and the cost of the technologies are shown in the table.In the absence of government oversight,the firms will pick technology 1 and emit 4 tons each.The government is considering two plans to reduce pollution: a 50% reduction by both firms or selling pollution permits.One permit entitles the owner to emit one ton of pollution.Without a permit,no pollution can be emitted. 
-Refer to the information above.Suppose that the government decides to sell four permits,i.e. ,four tons of total pollution,and starts the bidding with an opening price of $30.The ultimate equilibrium price of permits is __________ with Dewpoint buying __________ and Disunion Carbonated buying __________.
A) $100;3;1
B) $100;1;3
C) $200;2;1
D) $300;1;0
E) $50;4;2
Correct Answer:
Verified
Q98: Q99: Refer to the graph below. Q100: There are only two users of a Q101: The major difficulty with using a tax Q102: The use of pollution permits by government Q104: Compared to a fixed-percentage reduction regulation,a tax Q105: For a fixed-percentage reduction in pollution emissions Q106: The three firms below have five choices Q107: The three firms below have five choices Q108: The objection to selling pollution permits -that![]()

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