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Table 9.7 -Table 9.7 Shows the Production Cost for Two Utilities at Utilities

Question 208

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  Table 9.7 -Table 9.7 shows the production cost for two utilities at different levels of sulfur dioxide emissions. Assume that the government issued 8 marketable pollution permits to each firm. Suppose that Firm A has already sold a permit to Firm B. If Firm A contemplates selling a second permit to Firm B, what is Firm A's willingness to accept? A)  $5,000 B)  $6,000 C)  $7,000 D)  $8,000 Table 9.7
-Table 9.7 shows the production cost for two utilities at different levels of sulfur dioxide emissions. Assume that the government issued 8 marketable pollution permits to each firm. Suppose that Firm A has already sold a permit to Firm B. If Firm A contemplates selling a second permit to Firm B, what is Firm A's willingness to accept?


A) $5,000
B) $6,000
C) $7,000
D) $8,000

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