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# 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?

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
• rdushynska
• May 11, 2018 at 1:17pm

The total cost of... View the full answer

• rdushynska
• May 11, 2018 at 1:18pm
• does it matter that the permits are tradeable?
• rdushynska
• May 11, 2018 at 1:18pm

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