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    Principles of Microeconomics Study Set 10
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    Exam 10: Externalities
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    When One Firm Sells Its Pollution Permit to Another Firm
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When One Firm Sells Its Pollution Permit to Another Firm

Question 450

Question 450

Multiple Choice

When one firm sells its pollution permit to another firm,


A) both firms benefit.
B) the total amount of pollution remains the same.
C) the total amount of pollution decreases.
D) Both a and b are correct.

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