14. Assume there are two firms using a lake. Firm A uses the lake as a place to dump toxic waste, whereas, Firm B uses the lake in the production of soda pop. a. (2) If Firm B owns the lake, what level of emissions would they normally allow? a. Q1 b. Q 2 c. Q 3 d. Q4 b. (2) Assume Firm A offers to pay Firm B $10 for each unit of emissions allowed to be put into the lake. What is the resulting level of emissions? a. Q1 b. Q2 c. Q 3 d. Q4 c. (3) Firm B would accept more emissions because their. a. net benefit is increased by F + 1 b. net damages are reduced by D c. net costs are lowered by J d. net damages are reduced D + H + J c. net benefit is increased by F.