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The Following Companies All Manufacture Widgets and Dump Tons of Glop

Question 102

Multiple Choice

The following companies all manufacture widgets and dump tons of glop into the air. The following companies all manufacture widgets and dump tons of glop into the air. The government wants to halve total pollution but does not know how much it will cost each company. If the government employs a tradable permit scheme in which it gives the same number of permits to each manufacturer at no cost, the total cost of cleanup, after the exchange of permits, is $____. A) 0 B) 6,000 C) 7,000 D) 13,000 The government wants to halve total pollution but does not know how much it will cost each company. If the government employs a tradable permit scheme in which it gives the same number of permits to each manufacturer at no cost, the total cost of cleanup, after the exchange of permits, is $____.


A) 0
B) 6,000
C) 7,000
D) 13,000

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