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The Following Companies All Manufacture Widgets and Dump Tons of Glop

Question 111

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, the maximum amount that any of the firms would be willing to pay would be up to $_____. A) 100 B) 70 C) 30 D) 0 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, the maximum amount that any of the firms would be willing to pay would be up to $_____.


A) 100
B) 70
C) 30
D) 0

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