Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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?

( this is the third time i am asking this question and it dose not correlate to the class, first marginal profits need to be indicated and then there would be trades between firms )

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Economics

Authors: Campbell McConnell, Stanley Brue, Sean Flynn

21st Edition

1259723224, 9781259723223

More Books

Students also viewed these Economics questions

Question

4. What is the goal of the others in the network?

Answered: 1 week ago

Question

2. What we can learn from the past

Answered: 1 week ago