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melamori03 [73]
3 years ago
6

Tradable pollution permits A. are less desirable than corrective taxes in reducing pollution. B. are likely to create a higher l

evel of total pollution. C. will be more valuable to firms that can reduce pollution only at high costs. D. have prices that are set by the government.
Business
2 answers:
Ratling [72]3 years ago
8 0

Answer:

C. will be more valuable to firms that can reduce pollution at high costs.

Explanation:

Tradable pollution permits is a scheme that gives companies a right to produce pollution at a certain level during a certain period. If the pollution of a company is low b but it has high pollution permit than it can sell the leftover permit to those firms who produce more pollution.  Tradable pollution permit enables the firm to exchange pollution permit in return for efficient opportunity. This is valuable for those firms who create more pollution and reducing pollution costs them more than trading a pollution permit with other firms.

satela [25.4K]3 years ago
8 0

Answer:

The correct answer is letter "C": will be more valuable to firms that can reduce pollution only at high costs.

Explanation:

Tradable pollution permits are instruments issued by the government that allows companies to pollute up to a certain level according to their businesses. In case the companies exceed the pollution permit provided, penalties will apply over the excess of pollution. A company can sell those instruments in case they were not used during a given period.

Thus, <em>firms that unfortunately have to pollute environments to conduct their operations with a wide range of operations will value more the tradable pollution permits since reducing pollution costs tend to be expensive.</em>

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Explanation:

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Explanation:

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Oksana_A [137]

Answer:

b. constant returns to scale because average total cost is constant as output rises.

Explanation:

The question has options. Below is the complete question.

<u>Complete Question</u>

In the long run a company that produces and sells kayaks incurs total costs of $15,000 when output is 30 kayaks and $20,000 when output is 40 kayaks. The kayak company exhibits

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b. constant returns to scale because average total cost is constant as output rises.

c. diseconomies of scale because average total cost is rising as output rises.

d. economies of scale because average total cost is falling as output rises.

The correct answer is explained below.

In the long run a company that produces and sells kayaks incurs total costs of $15,000 when output is 30 kayaks and $20,000 when output is 40 kayaks. The kayak company exhibits  constant returns to scale because average total cost is constant as output rises.

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