10. (This problem is challenging) There are three industrial firms in Eurovia. The government wants to reduce...

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10. (This problem is challenging) There are three industrial firms in Eurovia.

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The government wants to reduce pollution to 120 units, it gives each firm 40 tradable pollution permits.

a. Who sells permits and how many do they sell? Who buys permits and how many do they buy? Briefly explain why the sellers and buyers are each willing to do so. What is the total cost of pollution reduction in this situation?

b. How much higher would the costs of pollution reduction be if the permits could not be traded?

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Business Economics

ISBN: 388402

2nd Edition

Authors: Mark P. Taylor, Andrew Ashwin, N. Gregory Mankiw

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Question Posted: Nov 04, 2024 10:00 AM

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10. (This problem is challenging) There are three industrial firms in Eurovia. The government wants to reduce...

Question:

Cost of reducing Firm Initial pollution level pollution by 1 unit A 70 units 20 B 80 25 C 50 10

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Business Economics

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