A town has two paper mills, each of which dumps chemicals into the water supply. Firm Y dumps 12 gallons per day, which would cost $250 each to clean. Firm Z produces 16 gallons, each of which would cost $500 to eliminate. The town is considering several policies. For each, indicate how many gallons of pollution the policy would reduce and how much it would cost to clean up.

a.The town gives $2000 to each firm for pollution reduction.

b.A new law mandates that each firm cuts pollution by 6 units.

c.Each firm is given 8 permits that they can trade. Each permit allows them to pollute 1 gallon.

d.The town places a tax of $300 on each gallon of waste that isn't cleaned up.