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he following table describes theTOTAL costfrom polluting: Firm 0 units pollution 1 unit pollution 2 units pollution 3 units pollution 4 units pollution A 200
he following table describes theTOTAL costfrom polluting:
Firm 0 units pollution 1 unit pollution 2 units pollution 3 units pollution 4 units pollution
A 200 80 30 50 0
B 220 120 60 20 0
C 180 90 45 15 0
a) The government decides to sell SIX pollution permits. What do you expect the price to be for the 6thpermit?
b) The government gives firms A and B 3 permits each (but none to Firm C). What will they do with their permits?
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