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

- 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

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The total cost of... View the full answer

- 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