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  1. (SU-17) ECN 101 – 57A Princ of Economics – Microeconomics
  2. (SU-17) ECN 102 – 57B Princ of Economics – Macroeconomics

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Final ExamQuestion 1 of 50

6.2 Points

Two firms can choose from five different technologies to reduce their pollution: A, B, C, D and E. The amount of pollution emitted by each technology and the cost of the technologies are shown in the table. Both firms have adopted technology A and currently emit 4 tons apiece. The government is considering two plans to reduce pollution: a 50% reduction by both firms or selling pollution permits. One permit entitles the owner to emit one ton of pollution. Without a permit, no pollution can be emitted.

The ultimate equilibrium price of six permits is __________ with Industrio buying __________ and Capitalista buying __________.

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