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Other Fields Homework Help Economics Topic started by: Loraine on Jun 20, 2015



Title: Firm A and Firm B emit 300 tons of pollution each and each have marketable permits that allow each t
Post by: Loraine on Jun 20, 2015
Firm A and Firm B emit 300 tons of pollution each and each have marketable permits that allow each to emit 100 tons of pollution. If it costs $5,000 for Firm A to eliminate 100 tons of pollution and it costs Firm B $6,000 to eliminate 100 tons of pollution, then
A) Firm B sells its permits to Firm A for a price above $6,000.
B) Firm A sells its permits to Firm B for a price below $6,000.
C) Firm A sells its permits to Firm B for a price above $6,000.
D) Firm B sells its permits to Firm A for a price below $6,000.
E) Neither Firm A nor Firm B sells permits because neither has extra permits.


Title: Re: Firm A and Firm B emit 300 tons of pollution each and each have marketable permits that allow ea
Post by: Chimelo46 on Jul 31, 2015
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Title: Re: Firm A and Firm B emit 300 tons of pollution each and each have marketable permits that allow each t
Post by: Chimelo46 on Aug 31, 2015
The textbook reference in your signature really helped me narrow it down.

Happy to help ;)