Table 16.1 -Producers X and Y Dump Waste into a Local River.Table

Multiple Choice

Table 16.1
-Producers X and Y dump waste into a local river.Table 16.1 shows the production costs each firm faces at different levels of waste.The government in the area has created a set of pollution permits.Each permit allows a producer to dump 100 gallons of waste.If the government issues an equal number of pollution permits to each producer,

A) neither producer will want to sell its permits at a price of $300.
B) Producer X will be more willing to sell its permits than will Producer Y.
C) both producers would be willing to sell all permits at a price of $50.
D) Producer Y will be more willing to sell its permits than will Producer X.