View the step-by-step solution to:

Firm A produces 30 tons of pollution and its cost of pollution reduction = $100 per ton Firm B produces 20 tons of pollution and its cost of

Firm A produces 30 tons of pollution and its cost of pollution reduction = $100 per ton

Firm B produces 20 tons of pollution and its cost of pollution reduction = $200 per ton

Firm C produces 20 tons of pollution, its costs of pollution reduction = $400 per ton


Gov gives firm A 15 tradeable permits, and firm B&C each 10 traceable pollution permits (each permit = allows right to 1 ton of pollution)


What is the total cost of pollution reduction?

Top Answer

Firm A produces 30 tons of pollution cost of pollution reduction = $100 per ton Tradeable permit available = 15 = 15 tons Now... View the full answer

1 comment
  • My answer key says that the answer is $4000 :( but your method makes sense, perhaps my answer key is wrong
    • rdushynska
    • May 11, 2018 at 1:17pm

Sign up to view the full answer

Other Answers

The total cost of... View the full answer

tradeable permits.PNG

2 comments
  • My answer key says that the answer is $4000 :( but your method makes sense, perhaps my answer key is wrong
    • rdushynska
    • May 11, 2018 at 1:18pm
  • does it matter that the permits are tradeable?
    • rdushynska
    • May 11, 2018 at 1:18pm

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
Ask a homework question - tutors are online