Table 9.8 -Table 9.8 Shows the Production Cost for Two Utilities at Utilities

Multiple Choice

Table 9.8
-Table 9.8 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. If Firm B would like to purchase one permit to be able to discharge 9 tons of sulfur dioxide, what is Firm B's willingness to pay?

A) $2,000
B) $3,000
C) $4,000
D) $5,000