Image transcription text (Table: Pollution from Firms) Suppose that each firm is emitting 10 units of pollution, for a total of 20 units. The government
Image transcription text (Table: Pollution from Firms) Suppose that each firm is emitting 10 units of pollution, for a total of 20 units.
The government would like to decrease total pollution to 10 units by giving each firm five tradable pollution
permits.
Quantity of Firm A’s Marginal Firm B’s Marginal
Abatement Cost
Abairment Cost
100
110
100
The pollution permits will sell at a price of $
a) 80
O b) 75
O c) 70
d) 85 My last attempt. Very very important for me. I will rate accordingly. Ty-ped answer only. Multiple votes will be given..
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