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able below shows the production cost for two utilities at different levels of sulfur dioxide emissions. Assume that the government issued 8 marketable pollution permits
able below 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 nine tons of sulfur dioxide, what is Firm B's willingness to pay?
Select one:
a. $2,000
b. $5,000
c. $6,000
d. $9,000
Sulfur Dioxide Discharged (Tons) | Firm A | Firm B |
---|---|---|
10 | $8,000 | $9,000 |
9 | 10,000 | 12,000 |
8 | 15,000 | 18,000 |
7 | 20,000 | 27,000 |
6 | 28,000 | 37,000 |
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