The city council wants to curb emissions by half and decides to auction off four permits, each of which entitles the bearer to emit 1 ton of smoke per day. no smoke may be emitted without a permit. suppose the government conducts the auction by starting at $1 and asking how many permits each firm wants to buy at that price. if the total is more than four, it then raises the price by $1 and asks again, and so on, until the total quantity of demanded permits falls to four. how much will each permit sell for in this auction? each permit will sell for $ . how many permits will each firm buy? sludge oil will purchase permit(s). northwest lumber will purchase permit(s). what will be the total cost to society of this reduction in pollution? total cost of pollution reduction will be $ .

Amanufacturer has paid an engineering firm $200,000 to design a new plant, and it will cost another $2 million to build the plant. in the meantime, however, the manufacturer has learned of a foreign company that offers to build an equivalent plant for $2,100,000. what should the manufacturer do?

1. which one of the following would be an example of a supply-side market failure? a. a gas station is slowly leaking diesel fuel from its underground tanks, and after the leak is discovered, the business immediately cleans up the pollution at its own expense. b. a gas station is slowly leaking diesel fuel from its underground tanks, but the state uses taxpayer money to clean up the pollution rather than requiring the business to pay. c. your business wants to attract repeat customers by putting on a customer-appreciation picnic at a public park, but you decide not to because you couldn't prevent noncustomers from consuming the food and entertainment you provided. d. everyone rushes to the local retail outlet at midnight on the day of the release of a new video game console, and the store runs out before everyone is able to buy one.

"consists of larger societal forces that affect how a company engages and serves its customers."